Head and Shoulders formations

[kennas]

New thread dedicated to stocks that have formed up a H&S, or reverse H&S.

These can pan out quite well for a trade going short of long.

Just probabilities of course.

We can ID them in here and follow them through to see if the targets were met, or thereabouts.

My first nom is BHP.

Looks to be breaking through the neckline where there should have been good support, and also looks like it may break the next important support at $40. The target coincides with long term support around $34.

Will be interesting to see if the principle is valided more than not.

[kennas]

Quote: Originally Posted by kennas My first nom is BHP. Looks to be breaking through the neckline where there should have been good support, and also looks like it may break the next important support at $40. The target coincides with long term support around $34.

[Miner]

Quote: Originally Posted by kennas Broken support at $40 by the looks.

[kennas]

Quote: Originally Posted by Miner So as per chart continuation BHP is heading towards $34 ? The ASX 200 will get a thud surely Cheers

[panikhide]

Nice observation Kennas. I was wondering when to get back into BHP

Your head and shoulders prediction would appear to be consistent with those predicting that the XAO will fall to 4700-4800.

[brendan87]

How is this? TSE 1 year.

[kennas]

Quote: Originally Posted by brendan87 How is this? TSE 1 year.

[Dutchy3]

This is a daily on PDN.

Might not be as noticeable on a bar chart

Volumes increased on the moves north to so a reasonable expectation of a base can now be supported

[kennas]

Quote: Originally Posted by Dutchy3 This is a daily on PDN. Might not be as noticeable on a bar chart Volumes increased on the moves north to so a reasonable expectation of a base can now be supported

[Dutchy3]

Hi Kennas

Here's another view. Weekly + volume represented by the width of the candles ...

I see the dominant whites that underpin all the price action on this one for the past six months. The last two weeks are rather indecisive and I might reasonably expect yet another week of this coming ....

I agree that a move through 700 would basically confirm the pattern then a matter of reading the script as it unfolds. Would not like to see a big black this week at any stage and / or a close at 600 as this would demonstrate a bit too much weakness at this stage ...

[Wysiwyg]

Okay, with my limited knowledge of charting this is my interpretation of what is unfolding.(note it`s the psuedo SPI 200 chart)

On the chart I can see that an inverted H&S formed around April/May.I think that the head of the previous H&S may be the shoulder of an even bigger inverted H&S forming.The shoulder and neck have been formed and the head is in the process of being formed now.

This is simply a projection and because it`s projected may not happen.
At least H&S patterns can be defined

Any variations on this???

[kennas]

Quote: Originally Posted by Wysiwyg Okay, with my limited knowledge of charting this is my interpretation of what is unfolding.(note it`s the psuedo SPI 200 chart) On the chart I can see that an inverted H&S formed around April/May.I think that the head of the previous H&S may be the shoulder of an even bigger inverted H&S forming.The shoulder and neck have been formed and the head is in the process of being formed now. This is simply a projection and because it`s projected may not happen. At least H&S patterns can be defined Any variations on this???

[kennas]

Quote: Originally Posted by Dutchy3 Hi Kennas Here's another view. Weekly + volume represented by the width of the candles ... I see the dominant whites that underpin all the price action on this one for the past six months. The last two weeks are rather indecisive and I might reasonably expect yet another week of this coming .... I agree that a move through 700 would basically confirm the pattern then a matter of reading the script as it unfolds. Would not like to see a big black this week at any stage and / or a close at 600 as this would demonstrate a bit too much weakness at this stage ...

[kennas]

This next one is not a good sight for me.

I'm long BMN.



Would expect $2.00 support to hold, but if not....

[Dutchy3]

Quote: Originally Posted by kennas H&S still in play for the minute, even though it's been smashed today due to the production shortfall. POU increases could turn it around, or market bear rally. Or, it's still trapped...

[GreatPig]

A few more weeklies on my watchlist, not all complete yet so may not eventuate. And WOR is perhaps a bit sus with such a small left shoulder.

GP

[MRC & Co]

That WOW chart is a great example GreatPig.

Even having a crack at that neckline once more, good low risk shorting opportunity right there.

Cheers

[GreatPig]

On the daily chart, WOW has an inverse head and shoulders with a target of around $27, which is pretty much the neck line of the weekly one. Maybe yesterday was as close as it's going to get though.

GP

[subaru69]

I'm no good at T/A and having some trouble copying the chart across (due to my computer skills) but could someone comment on ASX forming an inverse H&S pattern.

In my approximation the head has just formed, we should see a drop and then consolidation of price. Neck-line should be about 33 as right shoulder will be higher than left. Lowest price was ~29. Which theoretically means a target around 37.

[kennas]

Quote: Originally Posted by subaru69 I'm no good at T/A and having some trouble copying the chart across (due to my computer skills) but could someone comment on ASX forming an inverse H&S pattern. In my approximation the head has just formed, we should see a drop and then consolidation of price. Neck-line should be about 33 as right shoulder will be higher than left. Lowest price was ~29. Which theoretically means a target around 37.