The red circles highlight several tops on SPT's chart. If you closely at those candles, every one of them is a short-term sell signal. They are either bearish engulfing candles where the red body of the candle completely engulfs the prior day candle or they're dark cloud cover candles where the red body covers at least one-half of the prior day's candle. They all also follow significant uptrends. That's key. You can't have a
reversal without a prior uptrend. Despite a short-term sell signal on SPT, I believe the major trend is higher, so it's not a long-term sell signal. It's a short-term signal only. The green arrow points to the 20-day EMA and 50-day SMA, which is where I believe SPT could begin to move toward.
Any signal can be mitigated, however, and this bearish reversal signal would be mitigated if price action clears Thursday's high.
Happy trading!
