WED 5/27: MGA – CALLING A 2ND SELL SIGNAL @ $66.50 +2.8%

3:38 PM – Calling a 2ND SELL SIGNAL this afternoon as the stock continues trading higher and becomes extended from its 10 DMA, while volume remains well below average. The lack of strong volume support raises the risk of a pullback.

ULTRA Trader’s Tip: Weak Volume Behind Gains Is a Warning

  • Strong advances are more reliable when supported by strong volume.

  • Stocks extended too far above the 10 DMA often become vulnerable to pullbacks.

  • Taking partial profits into weak-volume strength helps protect gains.

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