SPH - A chance to accumulate?

On 2 Jan 2010, I mentioned in a post that I'm in no hurry to accumulate more SPH shares at current prices. On SPH's weekly chart, the declining 200wMA provides resistance at $3.80 and I would like to divest partially if its price moves to touch the 200wMA. Unfortunately, this did not happen. For a recap on what I said then, please see Rethinking SPH.

Today, SPH's price action on the daily chart formed a wickless black candle which crashed through both 20dMA and 50dMA before stopping at the rising 100dMA at $3.60 which happens to coincide with a 61.8% Fibo line. If the price breaks through the 100dMA, the 50% Fibo line provides support at $3.52. This happens to be a many times tested candlestick support and resistance level. A stronger support would be at $3.45. Rising 200dMA should limit further downside at $3.30.

MACD is poised to do a bearish crossover. MFI has formed a lower high indicating a lack of buying momentum. OBV has been declining steadily which shows distribution.

I like SPH for reasons stated in the earlier post. The current technical weakness might just present opportunities to accumulate SPH shares and I would do so at a price closer to $3.52. In the event that this support breaks, I would buy more at $3.45. For anyone who has yet to own any SPH shares and would like to do so, a hedge at $3.60 is not unthinkable as nothing is for sure. Remember that this would be a hedge. Don't break your piggy bank.