Shares of Moody's (MCO) broke to the downside in the new year, but the top pattern was building for months.
In this chart of MCO, above, you can see it turned south in August. Prices then "chopped" sideways for four months before breaking down again. You can see a death cross from the 50-day and 200-day averages in October and then the two averages start a downtrend in January.
In this longer-term view of MCO, above, prices are below the 40-week average and the average line has turned down. The On-Balance-Volume line peaked and the MACD oscillator is bearish, too. MCO could decline to the $80 level before we would expect some support to develop.
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