Tuesday, March 16, 2010
Big H&S
Click on the chart for a better view. This is a Ford common stock chart that shows the long term reverse head and shoulders pattern. The neckline is around the $8.80/share line. The exact bottom was $1.01/share. If you figure the difference from the bottom of the head to the neckline, then add that amount to the breakout of the neckline it gives you a initial target price of around $16.60/share. As of today the stock closed @ $13.49 and with the possibility of a retest of the breakout, buying here is not advantageous. Best to wait for a pull back or possible retest of the neckline for support. As things stand at this time if you where to buy at say $$13.50 you would be looking to make $3.10/share but if the neckline support where to be broken and stop you out just below $8.80/share that would be a loss of $4.70/share. The odds just don't stack in your favor. BE PATIENT!
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