Thread: S Fund H&S Price Target

I'm not Tom - but my simple interpretation is the formation of a triple base building support line with the potential of a run back to the Ocgtober '07 highs in the not too distant future. The important question is - is there enough money to fuel the fire for a stampede? The lows have been back tested and survived and now is the time to load up because the blast off is coming.

Originally Posted by JTH

Hi Tom

I've been watching what appears to be the Year To Date Head and shoulders forming on $EMW.

It looks to me like we are nearing the completeion of the top section of the right shoulder. The neckline appears to be at 550 and the peak of the head is at 650. If I'm correct would this make the price target at 450? There seems to be some major support levels going back to October 2006 to support this.

To me that would seem like a drastic downturn, so I was wondring what your take on it is?

Thanks... JTH

Hi JTH -
If it does break, that would be the target. It doesn't have to get there, but that is the target.

Notice the not so clean head and shoulders on the chart from Jan 07 through early Jan 08. The peak was about 690, the slightly sloping neckline broke near 620-ish, or 70 points. The target was about 550 and that's where it ended up. That was pretty drastic too.

So yes, that is the target, but we need a break first. It could hold as birch said, but it is a very clean H&S.

Thanks for the input guys