But it was all downhill from there

The Signs Say This Stock Is About To Tank

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canada goose uk site SummaryDarden Restaurants announced better than expected earnings before the bell, increased its outlook Canada Goose Parka and announced a new cheap Canada Goose $500 million buyback plan. canada goose uk site

canada goose outlet near me While the media will report it as canada goose coats on sale a gain on positive earnings news, the charts say otherwise. Bad action ongood news is bearish. canada goose outlet near me

canada goose outlet seattle There isn much more for the bears to ask for except perhaps downsidefollow through after the earnings sell off. canada goose outlet seattle

canada goose jacket outlet sale By Michael Kahn canada goose jacket outlet sale

canada goose outlet paypal When a company delivers a positive earnings uk canada goose Canada Goose Outlet outlet report and increases its outlook for the full year, it’s usually a good bet that its canada goose clearance sale stock will canada goose uk https://www.canadagoose-coats.ca outlet garner some buyers. canada goose uk shop But when cheap canada goose uk a stock initially rallies on the news only to spend the rest of the day falling on heavy volume, we can surmise that something is not right. canada goose outlet paypal

canada goose sale uk That’s exactly what happened to Darden Restaurants (DRI) on Tuesday. canada goose sale uk

canada goose outlet canada The restaurant operator announced better than expected earnings before the bell, increased its outlook and announced a new $500 million buyback plan. canada goose outlet canada

canada goose outlet authentic The stock canada goose black friday sale instantly jumped more than 4% from Monday’s close. But it was all downhill from there. By Tuesday’s close, shares had given Canada Goose Jackets up nearly all of those gains, Canada Goose online closing up just 0.6%. canada goose outlet authentic

canada goose kensington parka uk While the media will report it as a gain on positive earnings news, the charts say otherwise. Bad action on good news is bearish. canada goose kensington parka uk

canada goose outlet england DRI, as well as a good deal of the restaurant sector, has been in a decline since the summertime. Darden peaked in June and fell through mid July before settling into a sideways range. But within that range there were clues to suggest there was more pain ahead. canada goose outlet england

canada goose outlet niagara falls First, the Canada Goose Coats On Sale range had a flat top and rising bottom, which created an ascending triangle canada goose store pattern. Triangles can resolve in either direction, but the ascending variety tend to lean bullish. Canada Goose Outlet After all, the rising lower border suggests bulls getting active earlier on each swing within the pattern. canada goose outlet niagara falls

canada goose outlet store near me But the stochastics momentum indicator, shown at the bottom of the chart, told uk canada goose quite a different story. Steady lows but canada goose clearance falling canada goose uk black friday highs in the indicator suggested the stock spent more canadian goose jacket time actually falling than rising. And the indicator’s opposition to the price pattern served as a warning for the breakdown that occurred last week. canada goose outlet store near me

canada goose outlet nyc The earnings action on the charts showed buy canada goose jacket a failed attempt to move above the top of the pattern, followed by a strong move back down to the pattern’s bottom. Typically, these breakout failures telegraph a move back down to support. And they rarely stop there, as support frequently canada goose cannot hold the bears in buy canada goose jacket cheap check. canada goose outlet nyc

canada goose womens outlet In the case of Darden, the pre market jump was halted at strong overhead resistance dating back several months, and the resultant failure left the stock below both its key 50 day and 200 day moving averages. It also confirmed the breakdown of a double top pattern on weekly charts to add some big picture weakness to Canada Goose Online the mix. canada goose womens outlet

canada goose outlet vancouver So, let’s recap: With Darden, we have a stock with a breakout failure on strong earnings, long term double top confirmation and a weak sector. There isn’t much more for the bears to ask for except perhaps downside follow through after the earnings sell off. canada goose outlet vancouver

canada goose outlet in canada We can come up with a target by measuring the height of the triangle pattern at its widest part and projecting that down from last week’s initial breakdown point. That leaves us with a first speed bump at roughly $57.65 and canada goose factory sale a more canada goose coats likely target at twice that distance at $53.70. canada goose outlet in canada

official canada goose outlet Recommended Trade Setup: official canada goose outlet

canada goose jacket outlet uk Sell DRI short at the market price canada goose jacket outlet uk

canada goose outlet store montreal Set stop loss at $65 canada goose outlet store montreal

canada goose outlet toronto Set initial price target at $53.70 for a potential 13% gain in eight weeks canada goose outlet toronto

canada goose outlet uk Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. canada goose outlet uk

canada goose outlet mall I wrote this article myself, and it Canada Goose sale expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article canada goose outlet mall.

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