SPX Corporation (NYSE: SPW) is a company linked to the development of industrial machinery. It is a title technically assertive, which becomes extremely important when we base an entry movement in this factor. If we consider a long-term historical view, there is one factor that stands out, well defined upward movements, solidly supported, and very fast breaks.
As at the end of 2008, when it had a fall of 80% in just two months, also in mid-2011 has fallen by 50% in two months. But if in the first time it grew more than 200% after the minimum, in the present movement we “only” have 90%. And there is indeed space for more rises. Earlier this year triggered a Head & Shoulders with bullish neckline whose projection is to $ 95. It seems to me perfectly possible that this projection is achieved, despite currently being to show some weakness signs that should be taken into consideration.
The title found resistance at $ 78 and lately it has been losing volume in the upward movements. This leads me to fear that we may soon have a support breach. As sometimes happens with the bullish necklines, this mark transforms in an ascending trend line. That’s what happened here, resulting in a double support in the current zone.
Soon we will have news for the current lack of definition. If it breaks up, the next resistance is in the previous maximum. If it breaks down, we have to be very careful because it can be a new collapse. Above all, we’ll have to wait patiently and let her take the first step.