First up is manufacturing conglomerate Dover (DOV - Get Report). The $12 billion firm has been showing strong performance for the last six months and change, but now, a bearish double top setup points to an end to the bullish trend.
The double top is a pattern 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, which was at $70. Dover's break below that level last week triggered a sell for this stock. Now it's a question of where this stock will be able to catch a bid again.Even though Dover's topping pattern isn't as symmetrical as the textbook example, the trading implications remain the same for this stock. The uptrend that's been in place since late October got broken earlier in April, and now there's an abundance of sellers as investors look to take gains while they can. Investors looking to enter a position in DOV should wait until shares can establish support again.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts