Gogo, Inc (GOGO), DocuSign, Inc (DOCU), and DraftKings, Inc (DKNG) have all settled into bearish flag patterns on their respective daily charts. The bear flag pattern is created with a steep drop lower forming the pole, which is then followed by a consolidation pattern that brings the stock higher between a channel with parallel lines.

For bullish traders, the "trend is your friend" (until it's not) and the stock may continue to rise upwards within the following channel for a short period of time. Aggressive traders may decide to purchase the stock at the lower trendline and exit the trade at the higher trendline.

Bearish traders will want to watch for a break down from the lower descending trendline of the flag formation, on high volume, for an entry. When a stock breaks down from a bear flag pattern, the measured move lower is equal to the length of the pole and should be added to the highest price within the flag.

A bear flag is negated when a stock closes a trading day above the upper trendline of the flag pattern, or if the flag rises more than 50% up the length of the pole.

The GOGO Chart

The DOCU Chart

The DKNG Chart