This action raised the possibility that a head-and-shoulders top was being formed with the left shoulder (LS) in July and the head (H) in October.
The daily chart of Apple Inc. ( AAPL) appears to be forming a reverse head-and-shoulders bottom formation.
For instance, the homebuilders completed their major head-and-shoulders top formation in 2006, well before the housing market collapsed.
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It still had a somehwat cushy Buick ride, but it was head-and-shoulders above competitors like the Lexus ES350.
The daily chart shows a completed head-and-shoulders top formation, as the neckline (line a) was broken in July.
For chart heads like me, that would be the neckline of the giant head-and-shoulders top seen at that time.
U.S. Silica Holdings (SLCA), after breaking the declining topsline, ran up to the line of resistance, backed off and formed a little head-and-shoulders pattern.
The main reason for paying attention to the head-and-shoulders pattern in Apple is because a large number of other investors trade on this pattern.
And on that mantra, earlier this year, I talked about the head-and-shoulders top pattern that was coming into play over the course of the summer.
Chart Analysis : The iShares MSCI Brazil Index Fund ( EWZ) completed a reverse head-and-shoulders bottom formation last Friday, having closed above the neckline, line a.
Murphy also points to technicals to make the bullish case for gold, observing "a very tight reverse head-and-shoulders pattern" following the break from its high in February.
Chart Analysis : The iShares MSCI Brazil Index Fund ( EWZ) completed a reverse head-and-shoulders bottom formation on January 12 when the neckline, line a, was overcome.
The reverse head-and-shoulders bottom formation has several well-identified characteristics that allow the investor to clearly determine not only the entry point, but also the stop and profit target.
The iShares Russell 2000 Index Fund ( IWM) still shows a potential head-and-shoulders top formation as the neckline (line e) has been tested over the past two days.
This bounce was necessary to complete our head-and-shoulders top pattern.
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These folks, for instance, divine that something called a "head-and-shoulders top" formation--a market high above two high points on either side--means that stocks are poised for a downward move.
Completed and potential reverse head-and-shoulders bottom formations are taking center stage in early 2012, writes Tom Aspray, providing examples and in-depth instruction on how to trade these formations.
In looking through a large number of charts at the end of 2011, I noticed many stock and ETF charts that had either completed reverse head-and-shoulders bottom formations or appeared be forming them.
For Chris Johnson , managing quantitative analyst at Schaeffer's Investment Research, publisher of Bernie Schaeffer's Option Advisor, the overarching and ominous theme is the head-and-shoulders top the market seems to have formed over the last four years.
We will get confirmation of the head-and shoulders if the neckline of heavy support breaks at 1040-1050.
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Previously, we noted the well-defined head and shoulders pattern that forecast the deep correction.
The weekly chart of the CurrencyShares Japanese Yen Trust ( FXY) shows that a three-year head and shoulders top appears to be forming.
Implied volatility on Target options also surged--options traders anticipating a 31.5% deviation in share prices, a level head and shoulders above Target's actual historical share-price variability of just 21.2%.
James is a 27-year-old with a 35-year-old's head on his shoulders and he has been around long enough to think about what he is doing.
"Graham Onions' debut was fantastic, Stuart Broad has a 30-year-old's head on his shoulders and Tim Bresnan did really well today, while Graeme Swann can tie up an end, " he said.
The market had just over-shot the measured move from another head and shoulders pattern, and was breaking hard to new lows again.
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And sure enough, polls over the weekend - an ABC polls showed a surge of head and shoulders above the other Democratic candidates, among Democrats.
The potential exists for a head and shoulders pattern that could rally this market into end-of-the-quarter window dressing shenanigans before possibly turning back down.
Did you sell or short when the head and shoulders top produced a close below the neckline at 1360-1370?
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