LMT Head & Shoulders Dump DumpNYSE:LMT
Lockheed Martin is about to confirm a H&S pattern on the daily chart.
On the weekly timeframe, it is pretty over-extended.
The Weekly MACD has crossed under the signal line, and the (not shown) Weekly RSI has exited overbought levels.
Price has broken under and retested the median line of the Schiff Fork (Purple)
A test of the lower bound of the fork around the $406 price level is locked in. (T0)
Judging by the chart pattern, I suspect that price will inevitably breakdown further to the lower targets set by the H&S pattern.
Using the light blue "Inside" Pitchfork as a path down to the lower targets, which coincide with extension levels of the purple Schiff pitchfork.
T1 = Height of the "Head" measured down from the neckline. - 2.0 Extension of the Schiff Pitchfork = $375 price level
T2 = 16% Average price decline of H&S patterns in bull markets per the Encyclopedia of Chart Patterns by Thomas N. Bulkowski. - 2.618 Extension of the Schiff Fork = $356 price level
