PRIMERICA - DOUBLE TOP PATTERN (SELL PATTERN)
Here is a price chart for Primerica. We wanted to take the opportunity to show you a price chart of what many technical analysts term a 'double top' pattern. When a double top pattern forms it usually means that higher prices are not being forecast. It is a bearish (sell) reversal pattern. As always, there are variations in the double top pattern. This is just one of many forms of a double top pattern.
A double top pattern, from a technical perspective, is not confirmed until it breaks support to the downside. PRI has already created the double top. Now, it needs to break support to the downside which is between $118 - $114 in order to be confirmed. If you wait until PRI breaks support to the downside then you could be waiting for awhile.
But following language analysis, you can tell by the volume that the market for PRI is already weak. Every time PRI traded around $128 it received a lot of volume. This is indicative of the market participants selling their positions.
Using language analysis allows you to be in the forefront of the market action rather than behind. You don't have to wait until the market breaks support to the downside in order to know that the market is weak and to confirm that this is in fact a double top pattern.