If this was a clear bear market I would be going short this stock (clear bear market means 5 to 7 distribution days in past month and a failed low volume rally….like the one we are having now).
TECD is breaking down below the 50 and 200 dmas, on very strong volume. This breakdown below these two line are significant for two reasons. One is that the two moving averages were coming to a crossing point which should have acted as very strong support it started too until it failed the breakout on 3/7. Two is the failed breakout on 3/7. The fact that the stock reversed this breakout, on higher volume, and right back below the key moving averages is very bearish. Taking that action with a longer term view (weekly), you can see this is the fourth high volume selloff (March 05, March 06, Aug 06, and now) since 2005. This selloff should be the big one, as volume was very quiet on this rollover, unlike the other rallies that saw some accumulation. Cut your loss w/ a close above the 50/200 dma, if the stock does not start selling off immediately.
