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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST
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To: Howard Hoffman who wrote (19896)2/10/1999 2:33:00 AM
From: SkyDart  Read Replies (1) of 27307
 
I must respectfully disagree.

These purported necklines do not [at least yet] represent reversal patterns.

<<ATHM level would be 97.5. closed today at 93 (downslope)<<

First there is no downslope. At best there is a level of support at 90.

But no downsloping neckline. The problem you run into as you attempt to justify a neckline based upon nothing more than a support level and two peaks without downslope is that you will call "Head and Shoulders Reversal" when there is in fact no reversal. If you attempt to trade on such analysis you may lose lots of money.

Let me illustrate:

Look up Dell's 1 year chart. You would see a similar support and two peak pattern in Sept and Oct 1998 {No downslope}. If you had shorted Dell based upon the assumption this was a reversal pattern, you would have lost 1/2 your investment. [Short at 50 cover at 100]

If you had included in your criteria the downslope criteria, you would have eliminated the Dell pattern as a Head and Shoulders.

Dart
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