TEM Stage 3 Topping: Deep 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

TEM is currently in a Stage 3 topping pattern, with price churning around the 30-week moving average and a deteriorating trend template. The stock is forming a deep base with a 59.8% depth, which historically carries an elevated failure rate. Market sentiment is cautious, as the setup lacks a clear breakout catalyst and shows signs of distribution.

As of 2026-08-21 · Close $72.69

Stage 3 (Topping) — Price churning around the 30-week MA — topping consolidation (30-week MA 6-week slope: -3.94%)

⚠️ 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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