On the daily chart
, Universal American Financial stocks showed a double top
at USD 9.27, with the pattern shaping up after a powerful counterattack signal on October 31, 2014. Stocks tend to slide in the wake of this signal. The Monday session is closing with a shooting star
on the upper boundary of the pattern, a perfect time and place to short the name. Divergence in RSI
adds confidence. Short selling with a target of USD 8.56, the nadir of the pattern, is possible. A breakout from the pattern at this mark would pave the way for a classical formation with a USD 7.85 target.
My forecast participates in the Market Forecaster contest. Follow the link
to vote for it and help me win the top prize. Thank you.