Why the fall in SP?, page-21

If you look at yesterdays candle stick you can clearly see it broke the resistance levels. new lows of 6.71 vs the previous low of 6.85. Additionally the close yesterday was below $7. Breaking resistance is never a good thing. I attribute this to the AirTrunk news. We saw similar pressure last year when AirTrunk was formed.

The silver lining to yesterdays candle was that there was a reasonable shadow and a narrow body, forming a hammer. A hammer typically signifies resistance. i.e. the 6.71 is the new resistance. The bottom long shadow indicates that even though there was people selling to push the price down to 6.71 there was willing buyers to close the stock very close to the open.

For those not familiar with Japanese Candlesticks. Breakdown below.
Shadow - are the thin lines you see on each candle
Upper shadow - is the line above the solid/open box
Lower shadow - us the line below the solid/open box
Body - is the solid/open box. Bodys are more important than shadows as they incorporate the open and closes where there is typically more volume and friction to determine the price
Open Body - When the stocks opens lower and finishes higher
Closed Body - When the stock opens higher and finishes lower
Hammer - a candle with a narrow body and a long lower shadow and typically no upper shadow

In additional to the hammer we saw an engulfing pattern form today. An engulfing pattern is where you have two adjacent candles with opposite bodies and the candle on the right having a body that stretches from below yesterdays body (close) to above yesterdays body (open). The engulfing pattern we are seeing over the last two days is a bullish pattern because today's candle had an open body. Engulfing patterns typically signify a major reversal. I believe the reversal pattern was likely due to positive reporting from other companies today like Over The Wire (OTW) who have some hosting capabilities.

In short $6.71 is the resistance level and the stock is going up .