Wednesday, April 01, 2009

Head-and-Shoulder reversal; Diamonds / Dow

The 5-minute Diamond chart is showing a potential bearish head-and-shoulder pattern with a projected target of early March reaction highs. Certainly the pattern fits with the general overbought condition of the market which could take 1-3 months to unwind.

I have created a call for a push to $69.71 with a stop above $79.31. We'll see how it pans out.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.