From my previous post regarding this technical bounce, the word 'either' should have read 'upper' in reference to the SP touching top Bollinger Bands. (See bottom of page)

TODAY's MESSAGE: SP is responding as anticipated. Positive news may lead to a break out as early as Friday, however, a 'shooting star' candle is anticipated ending this trading cycle.

SP retraces back to .275 where it will gather momentum resting near the bottom of consolidation triangle. (Break-outs that begin near the bottom of consolidation patterns tend to have much more strength/momentum than those starting near the top of the pattern.)(Break downs that begin near the bottom of the pattern are less severe.)

The Accum/Dist and OBV indicators are off the chart (not literally), meaning more volume on 'up days' than on 'down days'. In other words, low volume will take it down quickly, which, in this instance, the effect is just what the SP needs in order to keep the lagging indicators, STO/MACD, in tact. The STO will (needs to) return to the oversold position with the SP remaining within the confines of the consolidation pattern and the MACD return/crossing over the zero mid-line.

Now, there's always the possibility that 'somebody knows something' and buying prior to news, however, the volume does not indicate that to me. Unless trading volumes hold steady at yesterday's volume (~2MM+) for several sessions or increase by double that amount, then I am of the belief that this is normal trading which is characteristic of a 'Technical Bounce' during consolidation.

Will the scenario play out in this fashion? We shall see. Next break out - .40-.55? Next break down - .15-.23? Need a little help, PTSC management! Don't let the mo-mo falter.

Good luck to all
PxP

RSI:MACD: http://stockcharts.com/h-sc/ui?s=PTSC&p=D&b=5&g=0&id=p52675785096

OBV:A/D: http://stockcharts.com/h-sc/ui?s=PTSC&p=D&b=5&g=0&id=p18460544240

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PRIOR POST:

SP is consolidating nicely. Big surprise to me that the SP has held within the current consolidation pattern, considering the recently 'perceived' negative news. (However, gcduck points out positive aspects within the scope of that news. Nice job, gcduck).

Consolidation pattern/trading range approximately .23-.36 with the mid-line of triangle around .29. STO is nearing oversold position, giving the appearance of a technical bounce back to .33 by the end of the week. Bollingers should narrow, with SP kissing either (should be upper) band, thus setting up for the SP to either, break out or break down. Without some positive news, I don't see the SP channeling sideways. BWTHDIK.

Both, 50/200 ema are creating great support, but the longer the SP stays below the median of the Bollinger's, the greater the chance of sliding down the slippery slope of the lower band. I believe it's critical that the SP trades back above .29-.30 in this cycle.

Looking at the chart since April, this is the 2nd consolidation pattern, that confirms a true break out (SP above 50/200 ema). Let the trend continue. PTSC must do something positive in the near term to sustain this trend.

Good luck to all!
PxP