Don't Ignore This Chart

Comcast Fails at a Key Moving Average

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A recent double top and failure at the 200-day SMA point to lower prices for Comcast (CMCSA). The double top formed from May to early September with two highs around 42 and a low around 38. Comcast broke this low with a sharp decline and then became oversold. The stock bounced back to the break zone and the 200-day SMA in in the second half of September, but turned lower the last four days and this solidifies the double top break. Also notice that a rising flag formed and the stock broke the flag line this week. The indicator window shows the PPO (5,30,5) turning down and breaking its signal line. Based on the height of the double top (4 points), the downside projection is to around 34. This is my target as long as resistance at 39 holds. 

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
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