The market has been particularly strong since the recent presidential election, and while a majority of stocks look good at this time, there are plenty that do not look so attractive at this point.
The market operates a lot on psychology, which is why so many traders put their faith in technical analysis.
Technical analysis is the study of a stock’s recent trading pattern, which a lot of traders use to predict in which direction a stock is headed. Technical analysis never tells the whole story, but since so many traders do believe in the practice, it can often become a self-fulfilling prophecy on the market.
The primary goal with technical analysis is to spot specific trends that tend to predict the market’s overall sentiment on a stock, and use that information to make an educated guess on the stock’s future. You need to look at how the stock is trading in comparison to its recent and long-term trends, as this can provide a clear picture as to the current sentiment that Wall Street has in regard to the stock.
Each of the following stocks appear to have broken down, and the technicals are screaming for investors to get out now before the stock trades even lower.