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TOPIC: Merck - nice example of a head and shoulders

Merck - nice example of a head and shoulders 29 Dec 2012 10:54 #1

  • remo
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hi gclark25
Thats a good example. The target is 37 and thats a strong support area.
Id wait for the target area to go long as head and shoulders has a habit of hitting its targets.
Good spot mate
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Merck - nice example of a head and shoulders 29 Dec 2012 01:22 #2

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Since I began trading, one of the first patterns I, and probably most folk, were taught was the head and shoulders pattern (and its sister, the inverse variation) - but I must confess, it is not a pattern I have ever really put alot of interest in.

Was mucking around tonight, and found a really nice example of such a pattern though.


Merck_-_head_and_shouldera.png


One would assume that it could be coming back down to test the 37 mark, however there is nice resistance just above it in either the 50% fib ext 38.7 (shown more clearly in the weekly view following) and also a previous key resistance at around 37.68 (also shown clearly in weekly)


merck_-_weekly.png



There is also support in the long term channel support line. I would most certainly place a long trade if it came down that far.

Anyway - just thought it was an interesting little example of a near perfect head and shoulders patter.
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