Office supply retailer Staples (SPLS - Get Report) is forming the exact same setup as Citrix right now -- only it's falling faster. Shares of the $8 billion firm have fallen more than 30% since mid-March, missing out completely on the rally that started at the beginning of June.
In Staples' chart, it's clear that trendline resistance and support aren't equal. Resistance has smacked shares of SPLS down at least six times already over the course of the pattern, vs. around half as many bounces off of support over that same time period. The comparative strength of the resistance line means that sellers are willing to take lower and lower prices for their shares right now; clearly, buyers have exhausted their capital or their patience here.
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