On
November 28, we mentioned that
Autodesk Inc. (Nasdaq:
ADSK) was trading near the combined support of its 200-day exponential
moving average and the lower trendline of the
Fibonacci fan indicator. These trading tools were added to the chart to give traders a better idea of where the stock could find a short-term bottom. We noted that the bulls would likely use the nearby support to signal a buying opportunity and that it would not be surprising to see the stock make a move higher. As you can see from the chart below, our original thesis was correct, but the bulls encountered some serious resistance at the previous high of $51.30. The reason we've chosen to take another look at this stock is because a
double top pattern has formed on the chart and the recent move lower is suggesting that the bears are taking control of the momentum. The next couple of trading days will be very influential on the direction of this stock because a sustained move below $46 will signal a shift in the prolonged uptrend.
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