Shutterstock, Inc. operates as an online marketplace for commercial
digital content imagery. It offers various photographs covering a range
of subjects, including animals/wildlife, the arts, backgrounds/textures,
beauty/fashion, buildings/landmarks, business/finance, celebrities,
education, food/drink, healthcare/medical, holidays, nature, objects,
people, religion, science, sports/recreation, technology,
transportation; illustrations and vector art; curated premium imagery;
and video footage for users engaged in video advertisements, commercial
motion pictures, television programming, video games, interactive
applications, and other video-based media.
Take a look at the 1-year chart of Shutterstock (NYSE: SSTK) below with added notations:
SSTK broke its $55 level of support back in July and the stock has
been declining ever since. However, over the past two months the stock
has fallen into a common pattern known as a rectangle. A minimum of (2)
successful tests of the support and (2) successful tests of the
resistance will give you the pattern.
SSTK’s rectangle pattern had formed a $35 resistance (blue) and a $29
support (red). At some point the stock had to break one of those two
levels, and last week SSTK broke the $29 support.
The Tale of the Tape: SSTK broke down from its
rectangle pattern. The ideal short opportunity would be on a rally up to
or near the prior $29 support. A break back above $29 could negate the
forecast for a move higher.
