{"id":14531,"date":"2025-02-03T00:01:46","date_gmt":"2025-02-03T00:01:46","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/03\/be-careful-with-these-topping-candles\/"},"modified":"2025-02-03T00:01:46","modified_gmt":"2025-02-03T00:01:46","slug":"be-careful-with-these-topping-candles","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/03\/be-careful-with-these-topping-candles\/","title":{"rendered":"Be Careful With These Topping Candles"},"content":{"rendered":"
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\u201cWhen do I sell?\u201d is easily the most-asked question I\u2019ve received over the years. There are multiple answers to this question based on certain variables. The first key variable is whether you\u2019re a day trader, short-term swing trader, or long-term buy and holder. I prefer swing trading, so my answer many times is when corroborating technical evidence tells me to sell. <\/p>\n

My easiest sell is after a failed attempt at a breakout or a major reversing candle on heavy volume. The first one is fairly easy to see. Let\u2019s use Palantir Technologies, Inc. (PLTR) as an example from Friday. I don\u2019t know if PLTR is going up on Monday or later this week, but what I do know is it broke out to an intraday all-time high on Friday, then failed to hold that breakout on a closing basis. Check this out:<\/p>\n

First, let me say that PLTR has a very strong chart. The AD line is continuously rising, a bullish cup has formed, and PLTR is a leader amongst software stocks ($DJUSSW). Second, I\u2019m not saying PLTR is a short candidate. I\u2019m simply saying it would be a sell for me short-term to take profits. I rarely short during secular bull markets. If it does make the breakout, I can always decide to jump back in. But I\u2019d be looking for PLTR to pull back to form a handle off the cup pattern, or possibly even pull back to the recent low near 65. Sideways consolidation is a very real possibility after an extended advance like the one PLTR has enjoyed. If you need further evidence, look no further than NVIDIA Corp (NVDA) after its June\/November\/January tops. It\u2019s still consolidating.<\/p>\n

The two red arrows mark what \u201ccould\u201d be a double top, resulting in a lengthy period of selling and\/or consolidation. Taking profits now is a risk-management strategy, eliminating the possibility of riding PLTR back to the downside. If income taxes is a concern and you\u2019re a long-term investor, I see nothing to suggest PLTR is a sell here. I\u2019m only discussing my preferred short-term swing trading strategy.<\/p>\n

A second stock with a similar look would be Parker Hannifin Corp (PH), which surged on Thursday after its earnings report. PH then tacked on further gains on Friday and found itself intraday in all-time-high territory. It too looks like a cup has formed:<\/p>\n<\/p>\n

The AD line here doesn\u2019t seem quite as strong as PLTR, but PH clearly is a leader in the industrial machinery space ($DJUSFE). As I looked around the market on Friday, and really throughout the week, I couldn\u2019t help but see a TON of companies testing key overhead price resistance.<\/p>\n

The S&P 500 filled its gap from the severe drop on Monday morning, then printed a bearish engulfing candle on Friday:<\/p>\n<\/p>\n

Seeing the S&P 500 fail at all-time highs and gap resistance, with well-above-average volume makes me very nervous, especially given the overall market environment.<\/p>\n

You\u2019re Invited!<\/h2>\n

There are a number of bearish signals emerging that I want to discuss with our entire EarningsBeats.com community. Accordingly, we\u2019ll be hosting a FREE webinar on Monday, February 3rd at 5:30pm ET. There\u2019s no credit card required, but you do need to register with your name and email address. CLICK HERE<\/a> for more information.<\/p>\n

Happy trading!<\/p>\n

Tom<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u201cWhen do I sell?\u201d is easily the most-asked question I\u2019ve received over the years. There are multiple answers to this question based on certain variables. The first key variable is whether you\u2019re a day trader, short-term swing trader, or long-term buy and holder. I prefer swing trading, so my answer many times is when corroborating […]<\/p>\n","protected":false},"author":0,"featured_media":14532,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-14531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=14531"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14531\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/14532"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=14531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=14531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=14531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}