My latest column on Investopedia where I look at Domino’s Pizza (DPZ), Eagle Materials (EXP), Hartford Financial Services (HIG), Western Digital (WDC):
4 Stocks, 4 Topping Patterns
Each of these four stocks has a different topping pattern potentially in play. The similarity is that if they decline much further a lot more selling could be forthcoming. Strong uptrends prior to the topping patterns indicate there is potential for long plays too, if the short-trades don’t materialize. Weakness over the last couple weeks in the major stock indexes means having a few potential short trades in the bag is a reasonable play. The overall trend is still up though, so if you trade these stock to the short side be sure the indexes are still weak (when the trade occurs) and that the short-trade price trigger has been hit.
Keep reading on Investopedia: http://www.investopedia.com/stock-analysis/cotd/082113/4-stocks-4-topping-patterns-dpz-exp-hig-wdc.aspx
Cory Mitchell. CMT
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