Toromont Industries stayed in a rising trend for over three years (2003-2006; A to B).

The stock, however, is now beginning to show numerous technical signals that must be considered negative:

1. The long-term rising channel has been violated (see dashed lines);
2. The 40-week moving average has turned down;
3. The price has uncharacteristically and consistently stayed below this average;
4. The volatility system indicator (VSI) shows negative momentum;
5. A large distribution area is visible (see dotted lines); 6. The moving average convergence/divergence (MACD) has turned down and shows a negative divergence (see lower panel).

A sustained decline below $21-$22 would confirm the breakdown and signal lower targets. Only a move above $25 would cancel the bearish behaviour.