Analog Devices (ADI), the final stock on our list, is another ostensibly bearish setup to keep an eye on right now. Shares of the semiconductor industry stalwart have been rallying (alongside most equities) for the better part of the last six months, but like JPM, it's starting to show some signs of weakness right now.
In ADI's case, the pattern to watch is a triple top, a price setup that's formed by three swing highs that hit their heads on the same price level. The sell signal comes when shares move through the "breakdown level" that connects the bottom of the pattern. With ADI moving through that level in yesterday's downside session, today's price action in ADI is going to be critical to watch. If shares confirm the breakdown, traders should consider that a sell signal.
For both JPM and ADI, the bearish signals setting up right now aren't necessarily signs the floor is getting ready to fall out - Mr. Market is still in the middle of a primary uptrend -- but for more-nimble traders who want to profit from short-term action, there's a trade to be made here.To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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