Short Trader: Bears Fly South With Copa

It looks like the bears are donning their Panama hats and heading south aboard Copa Holdings(CPA Quote). The company is the parent of Copa Airlines, which is based in Panama and services the Americas and Caribbean. It's also the parent company of AeroRepublica, a domestic carrier in Colombia.

After Copa announced positive earnings last week relative to the rebound taking place in the airline sector, the airline's share price could not resume an uptrend confirmation signal. Instead, the price remained in the range between $50 and $57.50.

This range happens to be the right shoulder of a head-and-shoulders technical formation. This type of pattern tends to be bearish and has a higher probability of leading to a break of supports and a test of former lows than producing an upward move. ...