FRI 1/9: ADI – CALLING A PROFIT TAKING 2ND SELL SIGNAL (1/3) @ $302.44 +8.7%

3:54 PM – Shares are starting to get extended from the 10 DMA while also approaching ROUND-$300 resistance. That combination justifies additional profit-taking as upside momentum begins to compress near a known resistance level.

SELL SIGNALS:
12/17 (1/3) @ $274.54 –1.3%
1/9 (1/3) @ $302.44 +8.7%

ULTRA Trader’s Tip: Extension Plus Resistance = Trim

  • Stocks extended from the 10 DMA are more vulnerable to pullbacks.

  • Round-number resistance often attracts sellers and slows upside progress.

  • Trimming into strength near resistance helps protect gains without waiting for a reversal.

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