Globalstar, Inc. (NYSEMKT:GSAT), after a big price-volume surge in mid-December, pulled back a little this month, creating a falling wedge formation. The upper-line of that pattern was broken Monday on volume expansion.
This was a very good sign for a continuation of the trend, and I am looking for a retest of the recent highs around the 2.20 area.
Daily technical indicators have corrected overbought conditions and are turning up from neutral areas, which could be a signal of a new impulse higher.
The next major resistance is around $1.86 and break above confirms the trend reversal, a jump till $2.20 is possible.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.