Sound Global – At a Very Critical Support Now

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.

This Post Has 6 Comments

  1. Marubozu

    Sound Global broke the uptrend support and also the neckline of the Head and Shoulders!

  2. RL

    Ha ha.. Chart patterns in TA are so subjective. Different people see different things on the same chart.

    I actually see a Falling Wedge. The upper trendline starts from where you have labelled the Head, and joins to the RS and the peak after the RS. While the lower trendline starts from the trough between where you have labelled the LS and Head.

    The solid hammer with heavy volume reinforces my opinion that this is going to be a Falling Wedge bullish continuation pattern.

  3. RL

    Further more, there is bullish divergence on the MACD histogram.

  4. RL

    Looks like the support from the hammer might not hold.
    My view is that next support level is at $0.66, followed by $0.60.

  5. RL

    Went in long today to give it a try. Downside risk is small compared to upside reward.

  6. RL

    Sound Global has rallied to the top of the Falling Wedge that I described. No H&S.

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