Inverse Saucer
A technical chart formation that indicates the stock's price has reached its high and that the upward trend has come to an end. An inverse saucer is characterized by a steady flattening of the uptrend to such a degree that the market at one moment enters a sideways range, but then slowly starts to fall slowly and finally accelerates downward. This rare formation provides no clear price target but usually implies quite a lot of potential since 50% or more retracement of the preceding uptrend can be expected. Also known as "rounded top".
Investopedia Says:
Inverse saucers occur as expectations gradually shift from bullish to bearish. The gradual yet steady shift forms a rounded top. Volume during inverse saucers often mirror the bowl-like shape of prices during a saucer - volume, which was high during the previous trend, decreases as expectations shift and traders become indecisive. Volume then increases as the new trend is established. Related Terms:
Cup and Handle
Head and Shoulders Pattern
Indicator
Retracement
Saucer
Technical Analysis
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