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The daily chart of Estee Lauder Companies Inc (NYSE: EL) shows a clear bear flag, which sets up a potential trade on any breakdown. Note that this is only a setup, and still requires an entry trigger. In this case, shorts could be initiated under the previous day’s low, with a stop perhaps in the 56.00 – 58.00 range. This is an example of a simple pullback, one of the patterns explored in detail in my new book, The Art & Science of Technical Analysis. Entering a trade like this is relatively easy, but exits and trade management are even more important. In this case, beware of a weekly close back above 52.00 which could set a bear trade (or failure test) on the weekly chart.