3:45 PM – Selling all of my SONO here as we head into the close. The stock was essentially turned back from its 10 DMA today, while that line is beginning to roll over. That combination is a bearish technical development and warrants an exit.

James’ Trader’s Tip: Watch the Slope of the 10 DMA

  • A rising 10 DMA typically supports advancing stocks.

  • When the line begins to flatten or turn lower, momentum may be fading.

  • Stocks rejected at a declining 10 DMA often face additional selling pressure in the days ahead.

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