SPC 040108

SPC seems to be showing a Descending Triangle (read Thomas Bulkowski's Getting Started in Chart Patterns for more details).



According to Thomas, the Descending Triangle has a 64% chance of a downward breakout. So always wait for a upward breakout (above the red line).

You can also try to trade if SPC break down but drop less than 10% before rebounding. This scenario often leads to large gains. For example, from the chart, you will notice that everytime SPC drops below 7.50, it tends to hit 7.80 or higher in the next few days.

For Monday :

Support @ 7.50 and 7.35
Resistance @ 7.53, 7.66 (red dotted), 7.74 (lower blue)

Good Luck !!