Rounded top Chart Pattern of MRK:
What Is A Rounding Top Chart Pattern ? A chart pattern used in technical analysis which is identified by price movements that, when graphed, form the shape of an upside down “U”. A rounding top may form at the end of an extended upward trend and indicates a reversal in the long-term price movement.
A rounding top represents a sell signal . The initial upwards trend becomes exhausted as the demand for the stock dries up.
The reversal to the downward slope of the rounding top indicates that demand has tapered off and a surplus supply is present, basically there are more sellers than buyers.
The price will be move so far in-case of breakout any side cause, the pattern is too tight.
A rounding top represents a sell signal . The initial upwards trend becomes exhausted as the demand for the stock dries up.
The reversal to the downward slope of the rounding top indicates that demand has tapered off and a surplus supply is present, basically there are more sellers than buyers.
The price will be move so far in-case of breakout any side cause, the pattern is too tight.
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