Sometimes a bearish chart is more like a bearish chart in waiting. That's what I see with Intercontinental Exchange (ICE).
The stock pattern doesn't look particularly strong or weak here, as it's been trading inside a channel for the past six weeks.
The risk here appears to be the secondary indicators, as the stock is trading near the bottom of the price channel.
There have been many, not just one or two, bearish crossovers on the daily chart of ICE. The Relative Strength Index (RSI) has fallen below 50, putting momentum into the bearish camp.
The Commodity Channel Index (CCI) has gone negative, pushing the trend into a bearish camp. Finally, the Force Index has also gone into the red, pushing the volume into bearish territory.
The short-term Slow Stochastics still looks decent here, but note many stocks have struggled when falling out of overbought territory and experiencing a bearish crossover. A loss of support here at $228 targets around $215 on the downside.
The weekly chart demonstrates many similar technical issues, without the price problems yet. Again, we see this long consolidation channel after a very bullish run.
A move over $245 and the stock should be set to see $275 or greater, but we are far from $245 at the moment. Instead, we are testing the support in the $225-$228 area.
The moving average convergence divergence (MACD) has been pushing lower for some time now, as the stock consolidates.
If bulls were going to take over, then we would expect to see a bullish crossover here in the MACD. ICE has tried this several times, but the stock has failed on each attempt. RSI is also below 50 here, not a particularly bullish sign.
Still, ICE has managed to hold at the RSI support line on each test. A failure on the RSI should drag price along with it.
Lastly, the On Balance Volume has fallen below the 40-week simple moving average, similar to the 200-day moving average.
ICE has struggled to move higher when this condition is present, so at the very least, we can expect that the stock doesn't do much here; at the very worse, we can look for a test of $205.
I would look for the price to trigger, as all the other pieces are in place for a solid bearish thesis.