Saturday, December 22, 2007

Synchronoss (SNCR) at heavy resistance

As a current owner of SNCR, I've become concerned about it's recent price action. The head and shoulders pattern is fairly obvious but when combined with the established TDST resistance and support levels, the bearish formation is hard to ignore.

Don't get me wrong, I like SNCR's fundamental story and also realize SNCR was placed on Goldman Sach's conviction list recently, but I have seen this kind of behavior before. Look what happened to Force Protection (FRPT) after I noticed the same kind of price rejection on the right shoulder.

I don't think SNCR is destined for FRPT's collapse, but I do think it is important to continue watching how Synchronoss acts as it attempts to punch through the resistance it is now experiencing.

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