Staples

Office supply retailer Staples ( SPLS) is forming the exact same setup as Citrix right now -- only it's falling faster. Shares of the $8 billion firm have fallen more than 30% since mid-March, missing out completely on the rally that started at the beginning of June.

In Staples' chart, it's clear that trendline resistance and support aren't equal. Resistance has smacked shares of SPLS down at least six times already over the course of the pattern, vs. around half as many bounces off of support over that same time period. The comparative strength of the resistance line means that sellers are willing to take lower and lower prices for their shares right now; clearly, buyers have exhausted their capital or their patience here.

>>5 Stocks at Risk of Falling off the Fiscal Cliff

A glut of resistance levels makes upside even more challenging for Staples right now. This stock is facing resistance at the overhead trendline as well as two overhead moving averages. When you see resistance, think "sellers." That abundance of sellers willing to unload shares nearby means that it's going to be tough for SPLS to make a higher print in the near-term unless something changes.

I'd avoid being long here.

If you liked this article you might like

Pret A Manger Takeover in the Works; Cisco's M&A Shackles Come Off - ICYMI

John Chambers' Exit From Cisco Could Pave the Way for Big Moves

Equifax CEO and Board Are Pretty Cozy

Equifax Is a Disaster, Jim Cramer Says

Jim Cramer Calls for Firing of Equifax CEO Richard Smith; Challenges Board