3:37 PM – Calling a 3RD and FINAL SELL SIGNAL here as shares sell off with an increase in volume while price is clearly being turned back from the 10 DMA. That repeated failure at the 10 DMA, combined with heavier selling volume, is further bearish technical action and completes the SELL process on this selection.

ULTRA Trader’s Tip: Repeated Failure at the 10 DMA Matters

  • When the 10 DMA repeatedly turns a stock back, it can become clear short-term resistance.

  • Increased volume during a sell-off adds weight to the bearish price action.

  • By the 3RD SELL SIGNAL, the technical evidence has accumulated enough to close out the selection.

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