Obama's Presidency on Red Alert? CONFIRMED: The president has been calling mandatory emergency meetings with ALL of his top officials... What about? Nobody is saying much except, "...we have substantial and growing concerns about the threats to U.S. economic and national security," according to a White House spokesperson. Turns out... This threat could destroy Obama's presidency. Click here to learn why. | |
| Tuesday, April 29, 2014 | Issue #2281 | |
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The 14% Decline We Were Waiting For Christopher Rowe, Director of Investor Education, The Oxford Club In chart analysis, the "reverse head-and-shoulders bottom formation" is considered to be the strongest bullish reversal pattern there is. And the strongest type of reverse head-and-shoulders bottom formation is one that takes more than a year to form. The bigger (or longer) the chart formation, the stronger the breakout tends to be. Juniper Networks (NYSE: JNPR) shows one variation of just that type of chart pattern. Let's break down the long-term chart. Take a look at a five-year weekly chart before I draw on it. The bullish chart pattern begins with the sharp 2011 decline, which occurred when the S&P 400 mid cap index declined 27%. The sharp move down, followed by the two intermediate-term lows, forms a left double shoulder. Then there's the major low in mid-2012, which forms the head. The last part of the formation is the right double shoulder created by the two significant lows in 2013. I highlight the entire formation below, in orange. Again, the chart above shows a variation. Typically the pattern has a single left shoulder, one head and a single right shoulder. This one sports two shoulders on each side. Minimum Price Target One of my favorite features of this chart formation is the clear price target it offers. I'll explain... BANNED IN AMERICA: The World's Safest Investment Have you heard about the strange bans cropping up from California to New York? Government offices, churches, even restaurants are getting onboard. The target isn't smoking, drinking or guns. We're talking about outlawing the world's safest investment... right here in the U.S.A.! But why would anyone want to do that? And why do all serious people need to understand what's happening, in time to prepare? This special presentation reveals everything you need to know. Please click here now. And prepare to be shocked... | |
The thin black dotted line shows the difference between the low point of the head ($14.20) up to the neckline ($24.20). That difference between the head and the neckline in this chart (in this case, 10 points) is typical of stocks demonstrating this type of formation. This gives us a $31.40 price target for the stock. The move above the neckline is the completion of this 2 1/2-year chart formation. Strong volume on a bullish reversal breakout is key to a strong chart formation, and we got that strong volume as the stock completed the pattern. The stock still hasn't reached its "minimum price objective" of $31.40. It's actually pulled back to an attractive entry point for those who weren't nimble enough to enter the position on the breakout. In general, when you see a reverse head-and-shoulders bottom formation it's typically a safe bet. The difficult part is recognizing the pattern early enough to profit from it. But if you miss the initial breakout, don't chase the stock. We often see a temporary pullback to the old resistance level from which the stock initially broke out. That's what has happened here, with Juniper declining more than 14% since mid-February. That decline may be just the moment patient investors have been waiting for. Good investing, Chris | |
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Miracle From Heaven? A tiny company located near the campus of MIT has made the impossible possible. One Nobel Prize-winning scientist is calling their breakthrough a "gift from heaven." It could even make you incredibly rich in the year ahead. In fact, a small group of Americans has already discovered the power of this medicine - and the results have been staggering. What is this medical breakthrough? And how can you make a small fortune by investing in it early? Find out by clicking here. | |
| | One thing is certain in this economy: instant retail gratification will keep getting easier. E-commerce continues to muscle brick-and-mortar companies out of their market share. Read On... | |
| | If you are wealthy - or even aspire to be - listen up. There is a growing movement in the U.S. that sees you and your way of thinking as the enemy. Read On... | |
| | It sure seems that a recently government-approved powdered alcohol would do way more harm than good if it ever hits liquor store shelves. Read On... | |
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