A few reasons to be bearish $MW Mens Wearhouse going forward;
1) Weekly price has put in a lower high and lower low than last week
2) Rejection of the key $59 resistance level which is very strong weekly resistance.
3) No price compression has occurred in this ascending triangle formation as the price has rapidly moved away from its price support without testing it, negating the bullishness that ascending triangle formations usually have. A retest of price support is therefore more likely.
4) RSI crossed above 70 and crossed back below it (69.6)
5) MACD - signal line has gone flat indicating momentum is at the least slowing
The ADX in this case is very strong however, suggesting a very strong uptrend, so caution is advised. Allow a stop for a potential false break and lower your position size in order to stay in the trade.
1) Weekly price has put in a lower high and lower low than last week
2) Rejection of the key $59 resistance level which is very strong weekly resistance.
3) No price compression has occurred in this ascending triangle formation as the price has rapidly moved away from its price support without testing it, negating the bullishness that ascending triangle formations usually have. A retest of price support is therefore more likely.
4) RSI crossed above 70 and crossed back below it (69.6)
5) MACD - signal line has gone flat indicating momentum is at the least slowing
The ADX in this case is very strong however, suggesting a very strong uptrend, so caution is advised. Allow a stop for a potential false break and lower your position size in order to stay in the trade.