Nasty Bear Flag Alert On $OLED: Here Is The Trade...

[Bryan Leighton]

Shares of Universal Display Corporation (NASDAQ:OLED) have one of the tightest, nastiest bear flag formations I have seen. There are high odds of this stock taking a major leg lower in the coming weeks. The first target is $108 and the second target is $90. The key here is the recent news from just days ago that many Asian companies are over-producing OLED displays. Asia and specifically China have a history of overproducing things and dumping them on the overall market, killing margins. This has happened with commodities like steel as well as solar panels. If true, this will hurt Universal Display Corporation's margins in a major way. The bear flag on the stock chart likely confirms the stock is heading sharply lower in the coming weeks.

Gareth Soloway

InTheMoneyStocks