SPL chart, page-443

SPL eight-month daily chart

My technical charts are the reason why I sometimes trade SPL (not always successfully I must point out). However, I think that it is extremely odd that the price movements of SPL, which depend so much on fundamentals and announcements, often seem to conform with classic technical charting. This seems to defy logical explanation. Or maybe it is me that is odd, thinking that profits can be made out of trading SPL.

Technically, the lower line of the tramlines seems to have changed from a support line into a resistance line. Technically, this is a most inauspicious sign. I assume that negative sentiment must be so strong that it is feeding on itself and producing more selling. However, the SP has now fallen so low, and the support/resistance line still continues to be so well-defined that, technically, any break upwards now might quickly double the SP.

When will the next bounce happen? The technical chart can provide no clues.