The progressive movements in Sony’s share price, both upwards and downwards, have partly been fueled by periodic news headlines, including unveiling of its new high-end Android-based smartphone (Sony Xperia Z).
As well as news in May that the company may be considering splitting its movie and music business from its consumer electronic division.
SNE has had a fairly positive upward rise since early 2013 and has traded above its 50-day SMA (Simple Moving Average) for most of the year.[related1][/related1]
It tested support at these levels in early May, but held firm to move on to new highs. The stock did test support once more at its 50-day SMA in late July, only to break through in early August.
It consolidated and finally broke resistance at the 50-day SMA in Sept, where it now seems to be forming another consolidation pattern.
Investors should watch to see whether the stock is able to break out of the current trading range.
If it does move up, it could potentially be headed for new highs.[related1][/related1]