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WisdomTree Total Dividend ETF forms bearish "Megaphone Top" chart pattern
May 15, 2012

Recognia has detected a "Megaphone Top" chart pattern formed on WisdomTree Total Dividend ETF (DTD:NYSE). This bearish signal indicates that the stock price may fall from the close of $50.96 to the range of $48.40 - $48.90. The pattern formed over 35 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 recent broadening action tells us that trading has been out of control, but a breakout on the downside suggests we're starting a more decisive downtrend. With its broadening price swings, the Megaphone represents a market that's unstable and out of control. It typically consists of two successively lower lows between three higher highs, and the reversal signal occurs when the price breaks down below the second trough (the lowest lows) as a sign of a more decisive bearish move.

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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