Analog Devices (ADI) is another stock that's looking "toppy" right now. Shares of the $14 billion chipmaker have been staging a respectable run since November, up more than 14%, versus around 10% for the S&P 500. But a double top pattern in shares puts the uptrend in question for March.
The double top is 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 $44.50. If shares slip below that price, we've got a sell signal for shares. With ADI trading just above that level this morning, here again is a potential for a quick trade signal this week.
If you do decide to take the trade in ADI, I'd recommend keeping a tight stop in place.
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