I think that should read "inverted left shoulder"
Paul does some really nice work, but with the OTC being so oversold on a point and figure basis, Q2 earnings warning season coming on, and a host of poor economic reports, I'd be inclined to be looking for bearish patterns rather than bullish formations.
I notice that the short interest on May 15th for NTAP was at a one year record high...13,823,566 shares
nasdaq.com
Surprisingly these #s were registered at the short term low in price, right before the quick high volume 5 point rebound back to the double top...(on lower volume) than the first top around $29.50. If I had to guess, I'd say this was a short covering rally... not accumulation, and the stock got heavily re-shorted from 28.75 for the next three sessions.
I'd look for strong support from the gap boundries below around 16, ( there is support on the weekly chart here too)
stockcharts.com[h,a]waclyymy[dc][pb50!b200!d20,2!a16.25!f][vc60][iUb14!La8,17,9!Lf!Lh5,5!Li5,5!Lg!Lc20]
then a short covering bounce back to resistance at the 50dma, and maybe the neckline of the H/S in play before reshorting. The inverted h/s is invalidated.
Build a base between $10 and $15, limit buy at $7.50
stockcharts.com[h,a]waclyimy[df][pb50!a7.25!a7.66!a10!a15!f][vc60][iUa8,17,9!Ub14!Lc10!Lh14,3!Lf]
Thanks again for posting Paul's work, he does some really nice stuff.
Regards,
John M. |
