AMSC: P Wave Breaking to Downside?American Superconductor CorporationBATS:AMSCtroydowvanzandtIn Ichimoku, the P wave covers wedges and triangles. With AMSC, there are some interesting structural confluences at work. The orange ray coming off the 17 July pivot low at around $31.40 is basically in line with what is known as a Kumo shadow formed by a large, flat segment of Senkou Span B that started in mid-April of this year and terminated in mid-May. The Kumo shadow is an advanced Ichimoku concept. Suffice it to say, they can present formidable support and resistance. Then we have the flat Kijun-sen (baseline or slow line) which can act as support or resistance. So, we have a triple confluence of the pivot low, the Kumo shadow, and the flat Kijun all acting as resistance after a slight gap-down. You'll notice that price is respecting this level. Note, too, that buyers seem to be losing resolve, as the anemic doji (as of the time of this writing) evidences. You'll notice that AMSC is trading under the cloud, an area where bearish outcomes have a slight probabilistic advantage. With all this in mind, I'd say this P wave is more likely to resolve to the downside. I'd say it's a 70-30 proposition. Of course, now that I mentioned it, it'll probably gap to the upside, but that's trading. When these P waves break, they often do so with a fairly impressive candle. I like confirmation before I enter, and the respect the confluence area is getting is providing a modicum. I'm nibbling with a stop above the confluence area. If price violates this area, I'll take a tiny haircut. If it breaks to the downside, I'll have a position I can scale into. If you'd like to learn more about Ichimoku, check out my new book Ichimoku: The Holistic System, available on Amazon in Kindle and paperback formats and on Bookshop.org.