The reverse head-and-shoulders formation that developed on this counter about a month ago is in danger of failing. This is because the right shoulder has become enlarged. Like any swelling, it denotes pain. Volume is contracting drastically, leaving the counter with very little impetus for an upside break.
 
Support has been established at $3.77, a level that coincides with the gradually rising 50-day moving average. A break below this level invalidates the right-shoulder formation. Resistance is at $4.30 and a breakout is beginning to look remote.