Shares of Universal Display (NASDAQ:OLED) have one of the tightest, nastiest bear-flag formations I have seen. The odds are high that this stock will take a major leg lower in the coming weeks.
Targets
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's margins in a major way. The bear flag on the chart likely confirms it's heading sharply lower in the coming weeks.