Technical Summary: The above chart is a 1 year chart for SPK. Each bar represents 1 day. The stock is trading near 52 week highs at around the same price that it was trading 1 year ago.
The chart can be divided into two halves. The frist half of the chart running through to March/April 2017 was charactised by choppy and volatile price action. With the stock trading violently between a low of $3.25 and highs of around $3.70. Since April, volatility has contracted signficiantly and the stock has traded in a slow moving uptrend. The stock has made a series of higher lows as indicated on the chart. With the stock in range of previous highs from 52 weeks ago we would not be surprised to see a sideways consolidation at the current juncture. We anticipate that some shareholders who bought the stock 1 year ago who have been sitting on losses all year will take the opportunity to liquidate and get out a break even. Once this supply of the stock has been exhausted there is potential for further upside. Investors and traders can play this in two ways. If they believed that there is going to be upcoming supply then they can wait until the supply is exhausted before buying. If they were not worried about this then the stock is not overextended and they are able to initiate a position now. We would view a break of a previous low
(point 5 on the chart) as bearish and an opportunity to either cut loss or take profit.
