Globalstar Stages Big Reversal Day

Shareholders of satellite service provider Globalstar, Inc. GSAT were faked out Tuesday. After making a big move higher on Monday, shares staged a reversal day.

When markets are trending higher, the bulls are in control. This was the case with GSAT. The bulls were also in control in the premarket Tuesday, which is why the stock opened much higher than Monday’s close.

But soon after the open, the bears took over. They drove the stock down over the course of the day. By the close, shares had given back all of their gains and then some.

After a significant move higher if a stock opens near its highs for the day, and then sells off and ends up below the prior day’s closing price, it is a reversal day. It’s a sign the bears are taking control of the market.

This type of action shows up on a chart as a reversal day pattern. Shares of GSAT formed one Tuesday.