- Global Selloff From Dubai Shows Signs of Winding Down
- Dubai Stock Selloff May Bring Buying Opportunity
- Longer Lines, Fuller Carts This Black Friday
- Tiger Woods Out of Hospital After Accident
- Dubai Fallout Is a Correction, Not Another Crisis: El-Erian
- Dubai's Debt Woes Signal New Era for Creditors
- Get Paid Six Figures to Wear a T-Shirt?
- The World's Biggest Debtor Nations
- Five Tips for Buying a Foreclosed Home
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
MOST SHARED
- Tiger Woods Out of Hospital After Accident
- The Good Entrepreneur Winner
- Get Paid Six Figures to Wear a T-Shirt?
- Dubai Spooks Investors But May Bring Buying Opportunity
- Global Selloff From Dubai Woes Shows Signs of Winding Down
- Longer Lines, Fuller Carts This Black Friday
- Halftime Report: Dubai - First Ripple Of Larger Crisis?
- 8 Retailers that Gain During the Holidays
- Next Week: Cash In Now Or Wait For A Santa Rally?
Investors should watch out for double and triple tops in market charts as they can signal a fresh wave of selling or a range-bound market, Sandy Jadeja, chief market strategist at ODL Securities, told CNBC.
“If a market attempts several times to break through, then that’s going to create a trading channel, which is exactly what we’ve been seeing on the FTSE and the Dow,” Jadeja told CNBC.
In the double top pattern, a market reaches a particular price level, then backs off and then attempts to make a break through that price level again, Jadeja pointed out. If it fails to break the previous level higher, it can be interpreted as a bearish signal.
“That has actually occurred on the FTSE ... it failed in November, but then made a reattempt in January,” he said. Since the second test the London-based index slumped by 25 percent, he added.
- Watch the full Sandy Jadeja interview above.
Double tops are one of the simplest chart patterns to watch out for and can give “a very powerful sell signal” when combined with a moving average sell signal, Jadeja said.
A close below a market’s moving average tends to signal a fresh move lower. Click here for Jadeja expiation of how to use moving averages.
Sometimes markets stage a third attempt at the peak, forming a triple top pattern, but the sell signal remains the same if it fails, according to Jadeja.
- These four sectors will be the next to lead the market.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?











