Head and shoulders?
stockcharts.com[h,a]dahlnyay[db][pb50!b200!f][vc60]&pref=G
If it is, then the "head" should be significantly higher than the two "shoulders" on either side. It isn't. Looks more like a double or triple top. Or random movement within a horizontal range of 39-48, which is just about the same old 40-50 range where we spent most of 2001.
More importantly, it isn't a confirmed H&S, until you break the neckline. The neckline is at 39 (where we bounced twice). The head is at 48. The difference is 9 (=48-39). So, the TA prediction is: if the stock goes below 39, then it will probably go on down to 30 (=the same size movement as from the head to the neckline). But there is no pattern, no H&S, until you break the neckline. Which we haven't, yet.
The H&S pattern, is really just a variation on the general idea that, once a stock has broken below a major support line (or broken above a major resistance line), it tends to continue in the same direction, making a large move. |
