Opentable, Inc. (OPEN) appears to be in a reverse flag formation as it has consolidated its breakdown through the neckline of a Head & Shoulders Top formation, as we see in the weekly chart of OPEN below. We think the stock is going lower, and do not see it getting back above its intra-week high of 63.50, about 10% higher from last night's close. We would look at any bounce from here as shortable using the 63.50 level as your ultimate stop, although we think the stock has a snowball's chance in Hades of making it that high on any bounce off near-term support at around 55. Regardless of the stock's short-term action, we expect OPEN to eventually stage a "downside breakout" through the 55 price zone that could coincide with a new leg down in the general market, so look for some synchrony between OPEN and the general market as a confirming sign of playable weakness on the short side.
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