We have seen BHI consolidates and may still consolidate a little further but based on our chart it is nearing end of the Descending Triangle. Does this mean traders will soon leave this stock? Are the bulls getting tired of defending this stock?
The Descending Triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. Regardless of where they form, descending triangles are bearish patterns that indicate distribution.