eBay Inc forms bearish "Pennant" chart pattern
Oct 21, 2015
Recognia has detected a "Pennant (Bearish)" chart pattern formed on eBay Inc (EBAY:NASDAQ).
This bearish signal indicates that the stock price may fall from the close of $24.21 to the range of $21.80 - $22.20. The pattern formed over 9 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to be resuming a sharp decline after taking a brief pause. A bearish Pennant pattern occurs during a dynamic market decline, representing a brief period of indecision before running off again in the same direction. The pattern consists of two converging trend lines with diminishing volume, and is confirmed when the price breaks down through the lower boundary to resume the decline.
This bearish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.