As highlighted in the chart below, Garmin Ltd. (NASDAQ:GRMN) had a big, red, wide range bar after reporting earnings. This red bar was followed by a classic bearish consolidation pattern. Please note how Garmin Ltd. (NASDAQ:GRMN) moved upward in an angle right into the 50 day moving average, represented by the red line. This price action triggered a technical sell signal on August 25. Today's sell off indicates that Garmin Ltd. (NASDAQ:GRMN) will see further downside.
The levels to watch for support as Garmin Ltd. (NASDAQ:GRMN) navigates lower will be as follow. First and minor level of support is $53.78. Second and possible short term pause/bounce level $50.25. Finally the third and final destination will be $47.17. At this last level traders can go long the stock assuming it gets there without any pauses or consolidation right above the level. Understanding the factors that make this trade high or low probability at the key levels is very important. I will be monitoring this equity and will send long/short alerts depending on the chart set up to our, Elite Round Table subscribers.
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Kiliam L.
Elite Round Table, Pro Trader
@KliiamLopez
http://www.inthemoneystocks.com
