phoenix_logo.jpgThe stock price of Phoenix Technologies Ltd. (NASDAQ: PTEC, PTEC message board) is somewhat an example of overreaction to bad performance news. Over a week ago the company had announced lowered revenue and earnings not in line with expectations. With some aid from decline in broad stock markets the price has took a serious hit back then. Now it's time for correction.

The price was actually on the uptrend over the past half a year and only broke down just before the earnings announcement. It is not credible to expect the return to the pre-fall levels, however some resistance points were can be identified based on that.

Currently the best bet would be for the price to climb up to at least $2.5 where some major resistance should occur. But in any case that is based on price performance that is more than half a year old so it might have lost liability with recent changes. Be it breach that level, another point is a more recent $2.8 which is likely the highest point the price could reach under current conditions.

In recent days indicators have moved to the positive side supporting the idea of at least some rally continuation. RSI has moved above 30 level, 4 day SMA just turned around and ADX indicates a pincher so at least we could say it has already bottomed out.

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Reference:

http://www.phoenix.com/