3Par (PAR)

[iam802]

3PAR (PAR) : Accumulation and Bullish

==
3PAR (PAR) has a bullish crossover with Tenkan sen cutting the Kijun sen on September 11. That is confirmed together with a accumulation signal from the Chaikin Money Flow indicator.

At that point, immediate resistance is expected from the kumo at 10.67

However, it only takes 2 weeks for 3PAR to breakout of the resistance. From the Chaikin Money Flow indicator, we can see that there is more accumulation going on.

At last closed, 3PAR is trading at 11.70 with possible resistance at 12.51 from its high back in July.

As mention on September 29, it is not clear what has changed since then.

I have a small position and may continue to accumulate. However, at this level, I will go with Covered Call to minimise my downside risk.

[kennynah]

802 :

you are getting very good at itchy mushroom TA...

i tried using the more traditional TA indicators and have a hard time determining the general direction going forward...although PAR is above MA50/200 which suggests that it could stay in a rally mode for some time to come...

however, it should be clear to all that PAR moved up and out of a key resistance at ~$8.75.... and for the last few months, it has stayed above this key resistance...

i agree with you that ~$12.50 is the next crucial resistance, which marks the next level of trading range...piercing through this level could well see PAR staying above this level for some time to come...

good luck

[iam802]

When no one else is preaching it, everything I says also sounds so true... hor...

But, you know my sifu hiding one corner (maybe shaking his head).

[kennynah]

i duno whether your sifu hiding and meditating in his batu cave to reach the 9th level of the 九阳神功。。or he is running road....missing for a nong nong time liao...

[iam802]

I have noticed that 3PAR’s price has refused to go down in recent weeks.

And just on Monday, Dec 7, 3PAR breakout of its resistance at 10.57.

In fact from the chart, we can see that there has been some buying since Dec 2.

My only suspicion is either the market makers are trying to push it up as part of 3PAR’s investors conferences or there someone has taken noticed of 3PAR’s value.

The risk remains for 3PAR.

1. It is a low volume stock.

2. No news on sales in Asia Pacific

Apart from that, the chart has shown that it has breakout of the resistance at $10.57 with the next resistance at $11.34

The price level is also above the kumo now which adds weight to the bullish side of the trade.

[iam802]

3PAR gaps up on speculation of acquisition.

http://www.reuters.com/article/idUSN271 ... arketsNews

[iam802]

3PAR has been heading up since the bullish gap up a couple of days back.

The Ichimoku chart is now showing resistance at 12.45 and 12.55 marked by the Chikou Span (the 2 points highlighted in oval)

If it breaks these 2 levels, we may see a huge run up for 3PAR as it approaches earnings date.

[iam802]

Spotted a long legged doji yesterday which signals a possible reversal may be coming soon for 3PAR.

After all, it has run up a fair bit since the speculation of it being acquired.

[iam802]

In my previous post on 3PAR, I suggested that a reversal may be coming as a long legged doji is spotted.

Yesterday, 3PAR has another round of sell off with above average volume.

As far as the uptrend is concern, there is still no signs that a bearish trend has occured.

I will be looking at the support of $11.25

If it breaks $11.25, I do not think that the trend will hold as the kumo support below it is very thin (despite the leading kumo is showing an uptrend).

The key thing to note here is:

- 3PAR spike up partially on speculations that it is a target of acquisition

- generally, the kumo provides better support when a stock moves up on improvements in business fundamentals

- what are the other possible factors that can cause 3PAR to spike up and command such a price level?

- are the sales improving (especially outside of US)?

[iam802]

3PAR may continue on its downtrend after bouncing off its thin kumo support at around $10.80

For the past 2 trading sessions, the chart shows a doji (look at red arrows) which could be a signal to a reversal of the prior trend.

In this case, 2 doji appearing right after a rebound could suggest that the price will not go higher.

And if rebound fails, we can definitely see a lower high being formed again (look at the green arrows).

Already we have 1 confirmation of a bearish cross with the Tenkan sen cutting the Kijun sen (highlighted in yelllow)

A break below yesterday’s low will be a clear sign that the price will not hold.