Jet Blues

A 5 months complex Head & Shoulders top is forming in JetBlue (JBLU) with neckline at 8.20, which was broken intra-day yesterday. A decisive break would imply a target of $7.



Palladium Diamond

After breaking out of the triangle as expected in a Feb post, Palladium was volatile last month but traded above the triangle. The metal then formed a tiny 5 week diamond pattern, which is breaking out today confirming the initial triangle thrust. Implied target is $835. Stop @ 779.


A Billionaire’s Pick

Exco Resources (XCO) completed a 5 months rectangle bottom by breaking out today with an implied target of $6.70. Stop loss @ 5.54. This may well be a reversal as this stock has been on a downtrend for the last 4 years.

Wilbur Ross Jr., owns almost 25% of the XCO at an average price of $11 ! If you don’t know the guy, well he is just another billionaire. More about him here

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More Discount At Dollar Stores?

Dollar stores big shots Dollar General (DG) & Dollar Tree (DLTR) are displaying similar chart patterns as of late. First up, DG. The stock is currently on support level 55. The level was once a resistance point in 2012. A break of the 55 level completes the 7 months Head & Shoulders formation and implies a target of $48.



Meanwhile, DLTR despite registering a new ever high last year, failed to follow through, signaling weakness. As it stands now, DLTR is forming a 9 months Head & Shoulders, with 49.50 as the neck line which is the same neck line as the small H&S formation of 2012. A completion of the pattern would imply a conservative target at the gap of 2013 around $42.

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Topping Toppers

Financial Engines (FNGN) is almost completing a clean 7 months Head & Shoulders top. Neck line at 51. A break of the neck line will imply a target of $32.




General Motors (GM) is also close to completing an 8 months Head & Shoulders top with a neck line at 33.50. A break will imply a target of $25.50.


What The 200MA Means For The Aussie

The Aussie dollar AUD/USD completed a Head & Shoulders bottom by closing yesterday above 0.909. But the 200MA is currently capping its ascent for the second time, giving it some resistance importance. So a break above the 200MA at 0.91250, would provide a conservative entry. Implied target is 0.950.


Aussie ETF (FXA) traders have the pattern neckline at $91.20 and the 200MA at $91.80. Implied target of FXA is $95


Shirts On Sale Soon

Phillips Van Heusen (PVH) chart may be interpreted in several ways, but they are all bearish. Firstly, PVH completed a 10 month rising wedge on 21st of January (in blue). PVH made a throwback into the pattern but turned away after a couple of weeks and moved decidedly lower. Implied target for this pattern is $87.

Second point of view is that PVH is constructing a double top formation with a neckline at 114 which has yet to be broken. Implied target for this pattern is $93.

Finally we can also interpret the chart as an 8-months Head & Shoulders pattern with a weak right shoulder. Implied target is also $93.

Take your pick !