SE Stage 3 Topping: Deep Faulty Base, Cautious Sentiment

Posted on by Eben@CANSLIM Research
SE daily stock chart with 10, 20, 50, 150 and 200-day moving averages, volume and RS line versus SPY — CANSLIM Research

Sea Limited (SE) is consolidating in a Stage 3 topping pattern, with price churning around the declining 30-week moving average. The technical setup is weak: the stock is 33% off its high, the 50-day average is below the 150-day and 200-day averages, and the 200-day average is not trending up. The current base is a deep, faulty pattern with a 60% depth and no confirmed breakout, while volume contraction is absent, failing the VCP test. Overall sentiment is cautious and deteriorating, suggesting limited upside until a new constructive base forms.

As of 2026-08-11 · Close $131.51

Stage 3 (Topping) — Price churning around the 30-week MA — topping consolidation (30-week MA 6-week slope: -2.68%)

⚠️ Faulty cup warning: the base is 60.2% deep (above the 38–40% threshold). A correction this deep leaves heavy overhead supply — trapped holders from higher prices are likely to sell into any rally, raising the failure rate of a breakout from this base.

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