Stock of the day: Garmin

Garmin has been on our radar predominantly due to its intriguing sideways trend pattern over the past few months. The stock has been fluctuating within a relatively tight range, locked between a horizontal resistance at $108 and support, both horizontal at $101 and dynamic, characterized by a black uptrend line.

However, change is the only constant in the market. As of yesterday, Garmin's stock indicated a marked deviation from this sideways pattern. The convergence of the black uptrend line and the $108 resistance, depicted in orange, formed an ascending triangle pattern. Such a formation often signals an imminent breakout or breakdown.

And Garmin did not disappoint. Thursday saw the stock breaking below the black uptrend line, sending traders a definitive mid-term sell signal. While an immediate target for this downward trajectory is the $101 support, there's an underpinning sentiment that if bearish momentum in the market continues, Garmin could very well breach this support too. A move like that could potentially unlock a more long-term selling spree.