We recommend a short position on Cabot Corp Stock. First we have to wait for the price of the stock to go up to the upper channel line and the rebound to happen. Then we proceed to take the short position. Later, when the price drops it is best to take the profit where the green line signals (aprox $41,71). The stop loss line sets a top for possible loss (aprox $49,68), in event that the price goes up instead of down, as predicted. Circled are points where the price touches the channel´s lines, so we expect the price to continue with the pattern presented.