Technical Analysis of SIGM:
There is soom good news in this chart. The first, marked by the 3 white circles is what I call a bullish 1-2-3 trend reversal. Essentiall all 3 indicators flash a good buy signal at the same time. when comming at the end of a strong down trend, this can signify a reversal.
The second piece of good news is that there is a massive divergence between the price and the PPO. Notice the two bright green bars on the chart. See how the price has dropped slightly, but the lows on the PPO have continued to rise? This is very bullish.
Finally volume is starting to dry up in the current trend, and the 13 day EMA has crossed over the 50 day EMA. All bullish signs. I think $26 is a reasonable target for the next 3 – 6 months.
Technical Analysis of GSK
Glaxo is a bit less certain to me. Right now the stock appears to be bouncing around continuation triangle pattern with steadilly increasing volume. It is close to having a bullish 50 – 200 MA cross. The 50% retracement level held up and the price took a nice bounce which could be a good sign if the price manages to breakout of the triangle. I would watch the price and if it breaks through the top blue line, that would be a great sign of a continuing up trend. It’s difficult to set a hard price target, but certainly $51 – $54 seem resonable to the upside, and $44.5 – $42 on the downside
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