Head And Shoulders Top Pattern Confirmed
Today, FRO confirmed a head and shoulders top pattern, on massive volume. We also hit a 1-2-3 bearish reversal on the daily chart.
The nearest support is 200day MA at around 51.7, which also happens to be the 61.8% retracement from the early March low which marked the beginning of the pattern. I will watch the trade at this point, and if the 61.8% line holds and inital hit and back test, I will close the trade for a small profit around 53.00. However the support level is a price support around 45.25.IF the 62.8% line doesn’t hold, there is no reason to belive we can’t get to this level.
Target is price support + 3% = 46.61
Stop is 3% above neckline = 60.67
Risk – $4.49
Reward – $9.57
Ratio – .47 to 1
Number of Shares – 178
Max Loss – 799.22 (8%)
Max Profit – 1703.46 (17%)
New Watch on Stock Symbol BIIB
After 2 days of massive losses, I’m looking for a backtest to around $59. If that level holds, I will look to short BIIB with a target of 43
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Tags: pick, short, stock
