Falling trend breaking downwards

Falling trends indicate that the company experiences negative development and that buy interest among investors is declining.

Falling trends indicate that the stocks will continue to fall. Trends often last for longer than investors think they will, and thus many buy a stock too soon. If you own a stock in a falling trend, you should normally sell it. If you are looking to buy stocks, you should stay away from stocks that are in falling trends.

Falling trend breaking downA falling trend breaking downwards signals increasing sales interest among investors. This can be triggered by fundamental aspects in the stock or by media or stock brokers focusing on the company, making more investors aware of the dangers and challenges the company faces.

A break downward is often the beginning of a continued fall, at an even steeper rate.

 

Special circumstances

In some rare cases, especially if the trend has lasted for a long time and the volume is unusually high, a break downward can signal a sell-off: everything looks negative and every investor wants out. This makes the price fall straight down, while the last investors sell. If the price rises again on high volume, it signals a clear mood change among investors. It is a warning sign of a potential reversal upward.

Nevertheless, the main rule is that a break downward from a falling trend is a negative signal.

In Investtech’s analyses, a stock in a falling trend and a stock that has broken downwards though a falling trend will both be equally negative, given they are otherwise identical.

Related articles

 


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.

Titlex

OK
Free Trial Now