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Unusual Bearish Pattern Signals ATI Is an Immediate ‘Sell’

Allegheny Technologies' chart shows a megaphone top has formed


Allegheny Technologies (ATI) — This specialty metals manufacturer, which supplies the aerospace and oil and gas industries, among others, has fallen on hard times. The company reported an operating loss of $0.21 in 2013. While S&P estimates it will see a profit of $0.45 per share this year, it rates the stock a “two-star sell” with a 12-month target of $28.

ATI has formed a very bearish “megaphone,” or broadening top, which is constructed by a series of higher highs and lower lows. The megaphone top is unusual and consists of three ascending peaks and two descending troughs. The pattern is completed when prices fall below the lower low.

I found this Trade of the Day using our new Profit Scanner service, which highlighted it as being in an intermediate downtrend with a target of $26.40-$27.40.  Check out Profit Scanner. I think you will be impressed.

ATI Chart
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Chart Key

Article printed from InvestorPlace Media, http://investorplace.com/2014/02/trade-day-allegheny-technologies-ati/.

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