My team of traders tell me that Brunswick Corporation (NYSE: BC), a recreational product manufacturer, is set to plunge lower.
As you can see on the chart, shares were down a modest 3% yesterday, but the dip was enough to break below a key trendline on its chart.
The share price had formed an ascending triangle pattern, with a horizontal resistance line (red line) and a rising support trend line (green line).
My team says these triangle patterns are great for traders, because you can easily identify how much the stock will move after the breakout simply based on the height of the pattern.
In this case, it’s $12 a share.
Since the breakout occurred to the downside at $66 a share, my team’s price target is $54 – more than 15% below the stock’s current price.
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