Sound Global is testing an important resistance at about $0.845. This level is a combination of 3 Moving Averages and also 78.6% Fibonacci Retracement Level. Failing to break above this resistance may trigger a down trend chart pattern for Sound Global. Next immediate support is at $0.70 followed by $0.60, a more attractive entry level for long term investing for this water treatment company.
Following up on the previous post on Sound Global. A Head and Shoulders are formed and the neckline at $0.77 was broken with a gap down & huge selling volume last Friday. Price target of this breakdown is $0.51.
Sound Global is currently trading below 20D, 50D and 200D MA.
Sound Global seems to have ended an Elliott Wave B and start a Wave C. (Refer to previous post on the Elliott Wave pattern on Sound Global). This turning of direction also potentially forming a right shoulder of a Head and Shoulders pattern.
Things to look out for:
- Currently Sound Global is just sitting on a critical support at about $0.846. This is a support level of 20D MA, 50D MA and 78.6% Fibonacci Retracement Level. Breaking below this level will send Sound Global to test the up trend channel support (green line).
- If the uptrend channel support (projected at about $0.80) is broken, the next support is the neckline of the head and shoulders at about $0.77.
- If this neckline is broken, the price target of this head and shoulders pattern is $0.51.