The most recent version of the falling resistance line Purespectrum, Inc. (PSPM) – which dates back to May -was technically broken on Monday with a massive outside day reversal to the upside. Volume behind that potential Purespectrum pivot wasn’t great, but it was stronger than the prior day. The stock’s followed through since then.

Purespectrum

The only problem we see with the Purespectrum chart now is the horizontal trading range that’s been in place sine July. If the stock can hurdle the ceiling at $0.40 now that the falling resistance line’s been broken, PSPM has a shot at returning to $0.80.

Shiner Intl.

Shiner International, Inc. (BEST) made a key reversal pattern (to the upside) yesterday. It wasn’t the more-common outside reversal bar though. It had elements of an outside day, but also mirrored – partially – what’s called a harami.

The name doesn’t matter either way though. What matters is how the market had a sudden and drastic change of opinion about Shiner International shares, and we’re seeing strong follow-through today.

The icing on the BEST cake is that yesterday’s reversal broke through a key resistance line, and today’s strength has carried the stock even further above that mark. Shiner International is still contending with resistance around $1.90 though, so don’t get too presumptuous.