Bullish Weekly Trend Reversal Signal by Donald W. Pendergast
Rhythm & Bulls
Here’s an example of how the price performance can give an advance indication that a bullish reversal was overdue.
After making a major multicycle high in May 2013 at $48.48, shares of Mattel Inc. (MAT) embarked on a 23-month long decline, finally bottoming at $22.32 on April 2, 2015. Savvy technicians who understand key market dynamics such as price cycles, money flow, and support/resistance levels (S/R) saw many bullish reversal dynamics lining up in the weeks before Mattel’s latest earnings release. I’ll look at each of them.
When a big brand-name stock like MAT has seen nearly two years of steady selling, sharp technicians (and value investors) will start to look for the telltale signs of a possible reversal, and MAT provided such chart readers with lots of exciting reversal dynamics to evaluate...