eTelecare Global Solutions, Inc. (ETEL) Here we have a clear emotional spike breakdown from the rounding top neckline. As been previously preached here, emotional spikes are clearly driven either by greed or fear. They are short term in nature and usually they tend to go back on that very same level when emotions ease. Lots of that happened in forex lately especially EURO (1.49 and 1.42 levels) but that’s another “small time analysis” to tell.
eTelecare Global Solutions, Inc. (ETEL) These are the trendlines for your perusal. Take note that the emotional spike is easing as the price consolidated for 2 weeks now. A visit of low $5 is highly possible at this time, based on the above premise of emotional spikes and “first attempt breakdown theory”. Said theory, have been discussed here in various charts mostly gold and forex. A more bullish scenario is V-bottom with target @ 6.60
eTelecare Global Solutions, Inc. (ETEL) Daily chart: Huge gap after buyout @ $9 confirmed. All daily downtrend lines breached with 9/19/08 low sitting at $7.25 daily uptrend line. Said uptrend line level will act as support. Little price activity is expected from hereon as buyout tender offer commence.
eTelecare Global Solutions, Inc. (ETEL) Weekly chart: The surge to the mid $8 level broke to major key levels. 1) Major downtrend line broken @ $6 and 2)Major triangle base line broken @ $7.80. It also breached the 50-day MA @ $7.17 which summed that eTel have reversed and is in a confirmed uptrend. A downtrend line resistance has been placed as guide. A breach of that trendline will validate the target @ near $13. CAVEAT.