SOLF


This is 3 yrs worth of data on a weekly period.

I did not draw this on the chart, but it traded in a big descending wedge. When it broke out in the Oct'08 timeframe, it did not break out strongly. It just sort of dwindled. HOwever, it didn't have far to go down. As I brought the triangular descending wedge down further (the trendline), it's like we had 2 levels of support.

Now it's traded right into the corner of the wedge and sort of fizzling out. It's like what I said before in another stock, usually when a compression pattern gets traded right into the very corner, it sort of does not have a strong breakout.

That's exactly what happened here. In fact, it looks like it wants to perhaps test the $2.50 support again.

We can see it's compressing again as we look at volume. Bullish MACD is weak.



Yes, it could bounce here as it was a previous resistance point. If it doesn't, then $5 down to $3.75 and $2.50 would be your next downside targets. Upside targets would be in the $7 and $9 areas.
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