10:04 AM – Stock is clearly getting turned back from its 10 DMA with an increase in volume. As shown in the chart below, initial breaks of the 10 DMA are usually 1st SELL SIGNALS, followed by a move back up to the 10 DMA and a “turn back,” which becomes a 2nd SELL SIGNAL.

SELL SIGNALS:
12/10 (1/3) @ $57.95 –1.5%
12/12 (1/3) @ $56.33 –4.3%

OVERALL P/L: (–2.9%)

ULTRA Trader’s Tip: Respect the Turnback at the 10 DMA

    • A stock failing at the 10 DMA after breaking below it confirms a momentum shift.

    • Turnbacks often precede deeper weakness as sellers maintain control.

    • Removing capital from weakening setups keeps the portfolio aligned with strength.

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