| Tickers in this article: MSCC, KR, CAG, GOOGL A double top is a chart pattern which occurs frequently. It isn't always a reliable indication that the price will continue lower, but it at minimum shows the uptrend has been compromised and a downtrend could develop. The patterns occurs when the price reaches a high, pulls back and then makes another similar high. The pattern is considered "complete" when the price drops below the pullback low. The combination of the price making a lower low and being unable to move higher is a sign that the price could proceed lower before heading higher.
After the price falls below the pullback low it will often rally back to the vicinity of breakout point (where the pattern completed). For those still bearish, this offers a shorting opportunity, as the expectation is that the price will continue to fall. It also offers an opportunity for those who are still long to exit their long position, if desired...
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