The stock is now on a three-day losing streak. Yesterday, it broke through the strong support level at 35.00. SMPH is now trading at its lowest level since May. Increasing selling pressure coupled with heightened momentum are pointing to a possible retest of the 34.40 support–last hit on 26 May. Note that RSI is still far from the oversold region. All things considered, the increasing selling histograms are supporting an overall bearish tone. Although a golden cross formed early this week, in the short-term there may be more downside in store for SMPH. Should the 34.40 level break, the stock could free-fall to as low as 33.85.

Buy when support holds.

Support: 34.40 / 33.85
Resistance: 36.00


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