10:04 AM – Calling a 2ND and FINAL SELL SIGNAL this morning as shares break below the 50 DMA. That loss of a major technical support level is a standard SELL SIGNAL under our rules and warrants fully closing out this selection.

ULTRA Trader’s Tip: Major Support Breaks End the Debate

  • The 50 DMA is one of the most important intermediate-term support levels we track.

  • A clear break below that line confirms that technical weakness has progressed beyond a short-term pullback.

  • When a major support level fails, follow the rule and move on.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.

3:38 PM – Calling a 1ST SELL SIGNAL as shares continue to exhibit bearish technical action after running into resistance near the previous high at the ROUND-$100 level. The stock has now developed a series of lower highs, fallen back below its 10 DMA, and appears to be developing a short-term downtrend. With multiple signs of technical weakness beginning to stack up, I’m calling the first SELL SIGNAL here.

ULTRA Trader’s Tip: Watch for a Pattern of Lower Highs

  • A series of lower highs shows that buyers are becoming less aggressive with each rally attempt.

  • When that pattern is accompanied by a break below the 10 DMA, the technical picture becomes increasingly bearish.

  • Recognizing a developing downtrend early allows you to reduce exposure before additional technical damage occurs.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.