This chart presents a simple message, stated many times on this site as part of continuing education; never buy a down trend,
especially:
if a stock breaks underneath major lows,
where the chart pattern gives a forecast of the probable next move (descending triangle in this instance),
when the economy is on the down side of the business decade cycle,
if price is below the moving average, and
no matter how enticing the fundamentals look.
A down trend should be short sold. For August, our virtual email service waited patiently for a short sale possibility, emails #45 through #49. And short sell we did, on the break of the lows, the pattern forecast a move to 62 cents, where we bought back the stock for a tidy profit. Our notional portfolio has the details.
