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Schwab US Small-Cap ETF forms bearish "Triple Top" chart pattern
May 14, 2012

Recognia has detected a "Triple Top" chart pattern formed on Schwab US Small-Cap ETF (SCHA:NYSE). This bearish signal indicates that the stock price may fall from the close of $35.03 to the range of $32.10 - $32.70. The pattern formed over 74 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 may have hit a top and seems to be turning around to form a new downtrend The Triple Top starts with prices moving upward followed by three sharp peaks all at about the same price level showing a test of a resistance level. Volume diminishes at each successive peak and finally bursts as the price falls below the lowest low--a decisive breach of that support level. This breakout confirms the pattern as a sign of BEARISH price reversal.

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


Recognia Alert Wire content is generated at market close by Recognia Inc. ( 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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