Head and Shoulders formations

[db96]

Anyone looking at QBE? Quite bearish. Recently broke thru neckline at about $20.

 

[johnnyg]

RMD looks to be completing a complex Head and Shoulder pattern. Might be one to keep an eye on.

 

[tech/a]

XAO

You'll notice that many patterns mimick the index.
This has occured at most times where a confluence in price action in many other stocks preceeds longer term moves.

In the major downturn many stocks were in stage 5 of 5 Elliott counts as was the Index.
Ive noticed when there are a number of stocks displaying similar counts its a MONTE!

This is likely to be similar.

 

[Sean K]

XAO

Well picked up tech!

Target around some support, but not where the W5 is supposed to go. Maybe there's a bounce about there.

 

[Buckeroo]

I'm no expert on charts, but did noticed with gold, broke through the neckline - is it headed toward 870 or even lower?

Cheers

 

[makingmoney]

I'm no expert on charts, but did noticed with gold, broke through the neckline - is it headed toward 870 or even lower?

Cheers

Well thats what the chart could be indicating...but a word to the wise.."Everyones jumps on gold in war-time scenario"..what im saying in english is that in my person opinion short-term the market could fall by a further 10% with up and coming end of year reports..Myself and a lot of traders i know in rl are thinking 2-3wks coming up could be a downturn..if this plays out then its hard to even imagine gold going down..cause in a panic everyone jumps to gold.Gold is a defensive stock when the market is negative,so it my pay dividends to re-evalutate the charts.And if your charts are suggesting gold going down-ward well quite could mean the bulls r coming out again..id say this may be august..id say the bears r coming out in july

 

[Annwn]

XAO
Showing a Head & Shoulders top, bearish reversal signal
L shoulder has occurred after a 2 month uphill run

Vol up on L shoulder and head formation, falling away during R shoulder forming.

Possible senario - pull back to trendline then price to fall to support level where price fell to last time ? around the 3100 level

Cheers
Annwn

 

[sammy84]

I'm no expert on charts, but did noticed with gold, broke through the neckline - is it headed toward 870 or even lower?

Cheers

H&S dont tend to be the most reliable patterns indicating a reversal. Studies have shown that on average if you were to enter a trade at the break of a neckline, after 10 days you would be sitting on a .7% loss.

Two articles for those who are interested;

http://www1.uni-hamburg.de/IWK/shoulder.pdf

http://articles.moneycentral.msn.com/Investing/PowerTools/DontBetTheRentOnTechnicalAnalysis.aspx

 

[Buckeroo]

Thanks people for your comments - much appreciated

I am very much of the same opinion. With the reporting season just around the corner (and I reckon it will be bad), then a jump to gold is on the cards. I will keep my eye on it just the same.

Interesting about the study - I hadn't seen this before

Cheers

 

[Strident]

XAO
Showing a Head & Shoulders top, bearish reversal signal
L shoulder has occurred after a 2 month uphill run

There seems to be non-confirmation from the Dow where the neckline appears to have been invalidated.

Considering the alternative scenario is a three-wave retracement that is complete already (edit: That ought to be "an alternative" and "or close to complete" - other scenarios are plausible and even this one could still continue for a bit), I'm just a bit cautious about going short at this stage.

 

[Annwn]

H&S dont tend to be the most reliable patterns indicating a reversal. Studies have shown that on average if you were to enter a trade at the break of a neckline, after 10 days you would be sitting on a .7% loss.

Great articles thanks
Bulkowski states - H&S are 93% reliable, with 63% meeting predicted price target, who do you follow, open to interpreation from where you sit?

Another stock - BKY Berkley Resources

Listed as a spec buy of the week in a trading newsletter

Cheers

 

[Garpal Gumnut]

XAO

You'll notice that many patterns mimick the index.
This has occured at most times where a confluence in price action in many other stocks preceeds longer term moves.

In the major downturn many stocks were in stage 5 of 5 Elliott counts as was the Index.
Ive noticed when there are a number of stocks displaying similar counts its a MONTE!

This is likely to be similar.

Been reading through ASF stocks posts, posted over the last month and this one will prove to have been the most prescient.

gg