Let's Look at the Fundamentals Here!
Technical Analysis revolves around Support and Resistance. There are other factors but those are essential in technical analysis. Acme Packet (APKT) just happens to be our study at hand. The stock broke out above Resistance and appeared to be heading upward. It his a Resistance level and has backed off. The Old Resistance is considered the New Support. As the price recedes toward the New Support/Old Resistance we are looking at a Bounce back to the upside. This could be a Buy Opportunity if the general market internals are Bullish. The Price Pattern suggests profit taking by those who bought at a lower level. Institutional holders of the stock could be selling into the strong upswing in the price action. Compared to recent Parabolic advances in the stock, the action at the moment is Digestive and Consolidating. A new breakout to the upside is very likely once this "Pause that Refreshes" is over.
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