It shouldn't be surprising that Gamco Investors (GBL - Get Report) is up more than 26% in the last six months. The investment manager lives and dies by the strength of the equity market, so with a major rally in stocks, more investors are willing to pony up for GBL's expertise. But don't jump in just yet -- shares look toppy right now.
That's because Gamco is currently forming a double top pattern, a setup that's formed by two swing highs that hit their heads at approximately the same price level. The sell signal comes on a breakdown below the near-term support level for shares, currently right at $53. If shares slip below that price, we've got a sell signal for shares. Momentum, measured by 14-day RSI, adds some extra evidence to this trade; the reading broke its uptrend at the start of the year.I'll be the first to say that this is the least bad of the toxic stocks we're looking at today. After such a big move higher, consolidation isn't just healthy, it's necessary. So at this point, it's not clear whether buyers are taking a breather or if they're totally wiped out. The indicator is going to be whether shares fall through that $53 support level. Otherwise, GBL is buyable on a move through $58 resistance. Just stay away from it while its stuck in between those two levels.