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.
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