American Tower recently created a double top when if failed to clear $85 on February 21 and then saw a dramatic decline in the two days following. The sharp sell-off created a MACD bearish crossover. The prior bearish crossover (January 24) resulted in a sell signal that occurred right near the bottom of the move before a bounce. This shows the MACD signals are not always profitable. Therefore, traders may also want to watch $78.38, that is the low between the two tops. If that price is broken it completes the double top and creates the expectation that the price will continue lower. With two attempts to break a strong resistance area, and very strong selling reactions this bearish crossover looks more promising than the last, yet caution is warranted as the price is currently inside a pattern and volatility is temporarily high.
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