Palm Inc forms bearish "Pennant" chart pattern

2008-12-01 16:00 PM ET

New York, NY.   A "Pennant (Bearish)" chart pattern formed on Palm Inc (NASDAQ Stock Exchange). This bearish signal indicates that the price may fall from the close of 1.88 to the range of 0.60 - 0.90. The pattern formed over 8 days which is roughly the period of time in which the target price range may be achieved.

A Pennant (Bearish) is considered a bearish signal, indicating that the longer term downtrend may continue. After a steep drop in price, the pennant reflects a temporary pause in the downtrend, consisting of two converging trendlines that form a narrow, tapering flag shape.

This bearish pattern can be seen on the following chart.

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