Wednesday, May 20, 2009

Reverse head and shoulders on Top40


Top40 end of the day chart made reverse head and shoulders and broke neckline on 18th May. Target for this move is 23000 exactly what was previous support now resistance. Neckline of head and shoulders was in the same time 23.6% Fibonacci level for the drop from all time high on 22.May 2008 to low on 20.November 2009.

Reverse head and shoulders are usually nice pattern to trade but don’t forget possible back test of the neck line around 19700. Neckline was tested 5 or 6 times over last few months so it should be solid support now.

How I see this playing out is market will hit resistance just above at 20850-21000 then retrace back to retest neckline around 19700 and up towards 23000.

Break above 20850-21000 would signal medium term buy signal based on Dow theory.

Trade well.

2 comments:

Unknown said...

chanel handbags, gucci outlet, michael kors, louboutin outlet, louis vuitton outlet, oakley sunglasses, prada outlet, oakley sunglasses, nike outlet, ugg boots, uggs on sale, ray ban sunglasses, longchamp pas cher, oakley sunglasses, nike air max, louboutin shoes, burberry, louboutin, polo ralph lauren outlet, longchamp, louboutin pas cher, longchamp outlet, louis vuitton, ralph lauren pas cher, tiffany and co, air jordan pas cher, jordan shoes, tiffany jewelry, nike air max, kate spade outlet, christian louboutin outlet, louis vuitton outlet, replica watches, prada handbags, cheap oakley sunglasses, louis vuitton, ray ban sunglasses, ugg boots, longchamp outlet, sac longchamp, oakley sunglasses, polo ralph lauren outlet, nike free, nike free, tory burch outlet, replica watches, air max, louis vuitton, nike roshe run, ray ban sunglasses

Unknown said...

montre pas cher, ugg pas cher, moncler, louis vuitton, bottes ugg, coach outlet, canada goose, thomas sabo, pandora jewelry, barbour, links of london, toms shoes, moncler, moncler, replica watches, juicy couture outlet, swarovski crystal, juicy couture outlet, canada goose, pandora charms, canada goose outlet, wedding dresses, pandora jewelry, louis vuitton, marc jacobs, lancel, canada goose outlet, canada goose, louis vuitton, canada goose, ugg,uggs,uggs canada, moncler, moncler, moncler outlet, ugg,ugg australia,ugg italia, pandora charms, canada goose uk, barbour jackets, karen millen, swarovski, doudoune canada goose, louis vuitton, hollister, sac louis vuitton pas cher, moncler, moncler, supra shoes, ugg boots uk