The stock of bitcoin miner Canaan Inc. (NASDAQ:CAN) has formed a classic head and shoulders pattern.
Unfortunately, for Canaan shareholders, the pattern has bearish implications.
Now that the neckline, or the support at $15.50 has broken, the shares could fall much further. The next clear level of support is around the $7 level. This is almost 50% below the current price.
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SOS Limited (NYSE:SOS) broke the support at the $4.50 level, which had been the bottom of the range since February.
This means the buyers who propped up the stock each time it reached $4.50 are gone. They may have finished or canceled their orders, but either way, they have left the market.
Sellers will be forced to accept lower prices for their shares, which will force the downtrend to continue.
Square, Inc. (NYSE:SQ) has failed at the resistance around the $275 level. Stops often move lower after failing at a resistance level.
After hitting $275 in February, Square's stock went into a steep decline. It reached $200 in early March and there is a chance the shares reach this level once again.
