We're seeing the exact same situation in shares of consulting firm Accenture ( ACN) right now. The price action in Accenture isn't quite as volatile, but it's every bit as tradable thanks to the breakdown in shares that happened in Friday's session.
Just like Yahoo! and the S&P, Accenture spent most of 2013 bouncing higher in an uptrending channel. At the time, that channel represented the high-probability trading range for shares. But all trends eventually break -- and that's what happened in ACN. Now, with lower highs and lows in place, shares look likely to move lower this summer.The tight trading in Friday and Monday's sessions indicate that buyers have been trying harder to hold onto their positions in shares of Accenture. Even so, the newfound abundance of supply of shares at the 50-day moving average makes the high-probability outcome to the downside from here.
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