Attempts made in late October to break out of this triangle to the downside fell through. The lower bound of the formation was crossed, which is a signal to short the stock with a target of USD 18. Speculative stop loss orders can be placed above USD 27.50.
Fundamentally, the stock is No. 2 on the list of overvalued shares in its segment, Aerospace/Defense Products & Services.
The synthesis of two methods implies short selling.