Short
Solid Head and Shoulders Pattern
Price Entry: $28.21
Price Target: $24.50
Stop-loss: $29.36
My current price entry is not ideal, an ideal price entry for this pattern would be after a break through the neckline and then a bounce proving the neckline as new resistance. But, price looks pretty bearish, it had huge volume on the sharp down day of yesterday. Price has gone under the 200 SMA significantly and might even make a death cross with one of the other moving averages. Also, the 20 SMA and the 50 SMA made a death-cross in November. My price target has been set based on the distance from the peak of the head to the neckline and the stop-loss has been set at $29.58 just in case this stock does not break through the neckline as I expect it to. This pattern seems as an obvious reversal pattern, in November the stock reached its 5 year high and topped.
Price Target: $24.50
Stop-loss: $29.36
My current price entry is not ideal, an ideal price entry for this pattern would be after a break through the neckline and then a bounce proving the neckline as new resistance. But, price looks pretty bearish, it had huge volume on the sharp down day of yesterday. Price has gone under the 200 SMA significantly and might even make a death cross with one of the other moving averages. Also, the 20 SMA and the 50 SMA made a death-cross in November. My price target has been set based on the distance from the peak of the head to the neckline and the stop-loss has been set at $29.58 just in case this stock does not break through the neckline as I expect it to. This pattern seems as an obvious reversal pattern, in November the stock reached its 5 year high and topped.
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