10:01 AM – The stock never recovered from the sharp, single-session earnings sell-off.

As seen on the chart below, on 12/8 the 10 DMA came into play, while the 200 DMA coming into play more recently.

Over the past several sessions, gains stalled at the 10 DMA, confirming a loss of momentum. Today’s decisive break below the 200 DMA represents another technical violation and triggers the FINAL SELL SIGNAL.

This closes the trade and frees up remaining capital for stocks with stronger technical positioning.

SELL SIGNALS:
9/29 (1/3) @ $16.40 –2.4%
10/6 (1/3) @ $15.88 –5.5%
12/24 (1/3) @ $12.04 –28.38%

OVERALL P/L: –12.1%

ULTRA Trader’s Tip: Respect Technical Violations

• Large earnings gaps often change a stock’s character for an extended period.

• When the 10 DMA becomes firm resistance, gain into should be sold, not trusted.

• A 200 DMA break after prolonged weakness is rarely the place to be patient — capital is better redeployed into cleaner technical setups.

CLICK/TAP CHART TO ZOOM
Chart services courtesy of stockcharts.com. Annotations by James Taulman.