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TEM Stage 3 Topping Pattern: Deep Faulty Base Signals Caution

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

TEM is consolidating in a Stage 3 topping pattern, churning around a declining 30-week moving average. The market is focused on a deep, faulty base with a 59.8% depth and elevated failure rate, while the stock sits 40.7% below its 52-week high. Overall sentiment is cautious and deteriorating, with only 3 of 8 trend template checks passing and no confirmed VCP or breakout setup.

Technical Analysis

As of 2026-08-19 · Close $61.25

Stage Analysis

Stage 3 (Topping) — Price churning around the 30-week MA — topping consolidation (30-week MA 6-week slope: -4.65%)

Detected Patterns — What the Market Is Watching

  • Deep Base (>33% — elevated failure rate) — depth 59.8%, length 43 weeks, pivot $103.25. Base formed from 2025-10-08 (left-side high) to 2026-08-19, with the low of $41.55 set on 2026-07-29

⚠️ Faulty cup warning: the base is 59.8% 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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