Blackberry is a textbook example of why you have to wait for a breakout and not to jump in before the pattern is completed. Earlier post is over here . Although its technical still a valid H&S Bottom its a loooong way now from the neck at 18.32
Westport Innovations (WPRT) has almost completed a 9-months H&S bottom. The right shoulder has formed a 4-month descending triangle which has broken out today on double the avg volume. A close above 32.89 completes the H&S bottom and targets $43.
After forming a 5-month Inv H&S Bottom last year with a successful breakout in November, Blackberry has more than doubled in value. Now, on a weekly chart, the stock has formed a possible 18-month Inv H&S with a neckline at 18.32. Notice that the current right shoulder has coiled into a wedge. A break out of the wedge and a close above 16.60ish will be an initial signal for more upside, whereas a clearance of the neckline will have a target of $30.
AIG has formed a 7-week island top. The pattern is complete as long as it closes below 43.25.
After the breakout (which i bought & got stopped out at a small loss) oil formed a 4-day island reversal and pushed down back into the pattern. This is bearish news for the bulls. Further weakness will be indicated by a close below the right Inverse H&S signaling a Inv H&S failure. My recommendation is to stay away from Oil until it breaks 30.79 on USO ETF shown below.
AutoDesk (ADSK) formed a not so perfect 6-months H&S Top which has broken neck @ 35.51. The pattern has retested the pattern and is back below the neck again. The stock is weak compared to the overall market. On a weekly basis the stock has completed a 5 point touch triangle that should be resolved soon.
American Vanguard Corp (AVD) formed a triangle top which has not yet broken down…yet. Keep a close eye at 27.8 level.
Golden Minerals Co (AUMN) has been trading in a tight range rectangle since mid April. The last couple of days showed volume increasing at the upper resistance and yesterday price pierced the rectangle on the upside but closed inside. A decisive close above the 1.95 completes the pattern heading to the upside. This may be a bottom.
Fastenal (FAST) completed a double top formation with the second top exhibiting a sloping H&S. In addition to a pick up in volume, the neck has been broken by 0.10, which is not that decisive. Anyways, watch it closely for an implied target of 41.
I wish you a profitable day with Ben and dont forget to comment, like or tweet the post