Price has broken the neckline but there is not a confirmed downtrend.
Price has delved below the neckline several times recently and the move down was not sustained.
Dipping below the neckline with this pattern is a warning sign and it does not feel like a bull market anymore. This pattern does best in a bear market and the Inverse H&S does better in a bull market.
Maybe the economy will not be conducive for the pool industry in the near term? Makes sense I suppose, but this is a great company. POOL made a lot of gains and a bunch of buyers, so there may be a lot of sellers if the selling gets started.
Negative volume is still high, so maybe I spoke too soon. The neckline is support until broken with a downtrend in place. I just know I am not buying this right now.
If I were to short this I would place my stop above the neckline after a downtrend is evident.
A guy called CNBC yesterday and asked him if he should keep this and the talking head said to keep it. It made me take a look as after I thought about it, this did not seem like an industry that would do well during a sketchy economy?
Just because price is doing poorly, does not mean it can't do worse.
No recommendation.
Price has delved below the neckline several times recently and the move down was not sustained.
Dipping below the neckline with this pattern is a warning sign and it does not feel like a bull market anymore. This pattern does best in a bear market and the Inverse H&S does better in a bull market.
Maybe the economy will not be conducive for the pool industry in the near term? Makes sense I suppose, but this is a great company. POOL made a lot of gains and a bunch of buyers, so there may be a lot of sellers if the selling gets started.
Negative volume is still high, so maybe I spoke too soon. The neckline is support until broken with a downtrend in place. I just know I am not buying this right now.
If I were to short this I would place my stop above the neckline after a downtrend is evident.
A guy called CNBC yesterday and asked him if he should keep this and the talking head said to keep it. It made me take a look as after I thought about it, this did not seem like an industry that would do well during a sketchy economy?
Just because price is doing poorly, does not mean it can't do worse.
No recommendation.