The three-year chart reveals the breach of support along the established uptrend line and the 50-day moving average that occurred in January of 2014. Also of note is the resistance that has formed along the 50-day moving average since the breach. In technical analysis it is a rule of thumb that support and resistance are two edged swords. Where we once found support, we now meet resistance.
The MACD and the RSI both generated sell signals before the release of its fourth-quarter results on Jan. 31, 2014. Finally, the stock tested support along the 200-day moving average, caught a bounce, but again met resistance along the 50-day moving average.