Page 312 - THE MARKET WHISPERER

308 PART 10 - Winning Trades
Breakdown Short, Estee Lauder Cosmetics, EL

At [1], EL breaks down with the classic inverted cup formation. We see
a lot of enthusiasm, large volumes and eventually, the calm. Notice how
after the first breakdown the stock continues to move sideways, and by the
end of the trading day [2], ends at the price level of the first low. In other
words, the hysteria has lessened and the stock has “calmed down.”