AMN Healthcare in Poor Health

Health care staffing company AMN Healthcare Services(AHS Quote) has enjoyed price appreciation for the last few years, moving as high as $29 before falling sharply back to $21 in April.

Once the failure at $29 led to strong distribution pressure, the eager bulls began to step away from the stock on any perceived rally. The first move back to $25 was immediately pushed lower, down to the $21 support. The next reversal to $23.40 failed again, and the price has once again retreated to $21.

It appears that the stock price is forming a technically bearish pattern, known as a descending triangle. ...