Bearish Chart Formation for PCM Inc After Forming Wedge Down Pattern

The stock of PCM Inc (PCMI) formed a down wedge with $7.20 target or 10.00% below today’s $8.00 share price. The 5 months wedge indicates high risk for the $96.87 million company. If the $7.20 price target is reached, the company will be worth $9.69 million less. Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high. The stock is down 0.25% or $0.02 after the news, hitting $8 per share. About 20,625 shares traded hands. PCM Inc (NASDAQ:PCMI) has declined 14.81% since August 24, 2015 and is downtrending. It has underperformed by 23.83% the S&P500.

According to Zacks Investment Research, “PC Mall is a rapid response supplier of technology solutions for business, government and educational institutions as well as consumers. More than 100,000 different products from companies such as Compaq, Microsoft, Apple, IBM and Hewlett-Packard are marketed to business customers using relationship based outbound telemarketing, catalogs and the Internet. Customer orders are rapidly filled by the Company’s distribution center strategically located near FedEx’s main hub or by PC Mall’s extensive network of distributors, one of the largest networks in the industry.”

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