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Guaranty Federal Bancshares Inc forms bearish "Double Top" chart pattern
Apr 23, 2012

Recognia has detected a "Double Top" chart pattern formed on Guaranty Federal Bancshares Inc (GFED:NASDAQ). This bearish signal indicates that the stock price may fall from the close of $7.70 to the range of $6.10 - $6.40. The pattern formed over 22 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 have reached a top, after failing to break through a resistance level and ultimately breaking downward in a sign of reversal to a new downtrend. The Double Top pattern forms during an uptrend as the price reaches two distinct peaks at roughly the same price level. Volume reflects a weakening of the upward momentum, tending to diminish as the pattern forms, with some pickup at each high, less on the second high. Finally the price breaks down below the lowest low to confirm the bearish signal.

This bearish pattern can be seen on the following chart and was detected by Recognia proprietary pattern recognition technology.


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Recognia Alert Wire content is generated at market close by Recognia Inc. (www.recognia.com). Recognia has developed proprietary technology for chart pattern recognition and automated interpretation based on the standards of technical analysis. Recognia investment research products scan all financial instruments across covered exchanges and generate news alerts for those that have formed one of more than 25 patterns.

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