Price has come back to test the break zone that was created after earnings.
Bulls need a close above $312 to attempt a change in course and possible move to the top of the range else the double top looks likely to unfold.
A double top is a bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset’s price falls below a support level equal to the low between the two prior highs.
This pattern, resembling an ‘M’ shape, signals a medium or long-term trend change in an asset class. It’s important to note that it’s not always easy to spot because there needs to be a confirmation with a break below support.
While a double top is a bearish signal, its counterpart, a double bottom, is a bullish signal. A double bottom resembles a ‘W’ shape and indicates a potential bullish price movement following a downtrend.
In trading, these patterns are often used as signals to sell or enter short positions (in case of double top) or buy or enter long positions (in case of double bottom) in anticipation of market changes.
Bulls need a close above $312 to attempt a change in course and possible move to the top of the range else the double top looks likely to unfold.
A double top is a bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset’s price falls below a support level equal to the low between the two prior highs.
This pattern, resembling an ‘M’ shape, signals a medium or long-term trend change in an asset class. It’s important to note that it’s not always easy to spot because there needs to be a confirmation with a break below support.
While a double top is a bearish signal, its counterpart, a double bottom, is a bullish signal. A double bottom resembles a ‘W’ shape and indicates a potential bullish price movement following a downtrend.
In trading, these patterns are often used as signals to sell or enter short positions (in case of double top) or buy or enter long positions (in case of double bottom) in anticipation of market changes.