Verisk Analytics (VRSK - Get Report) is showing the exact same setup right now, it's just less far along. Like EQR, Verisk is forming a head and shoulders top, in this case with a neckline level at $46 that's being tested today. While the sell signal hasn't triggered yet (VRSK's first close under $46 was yesterday, leaving the pattern unconfirmed), it's close. That makes this stock worth watching very closely for anyone who owns it.
A breakdown below VRSK's neckline gives the stock a likely downside target of $41 before it's able to catch some semblance of support. That leaves a lot of risk on the table for Verisk right now, and reason enough to avoid being a buyer here.Momentum gives us some extra evidence for downside in VRSK. This stock's 14-day RSI has been trending lower since all the way back in February -- but it's only just now starting to move into bearish territory. A confirmed breakdown below $46 would swing RSI to oversold pretty quickly, a switch that statistically makes even more downside likely near-term.
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