Monday, December 18, 2017

Bullish Inverse Head & Shoulder breakout in play?


Some stocks don’t have much to brag about over the past couple of years and below we look at one of them!


Mylan (MYL) has had a rough go of it the past two years as it lost nearly 50% of its value. During this decline could a pattern opportunity have formed. Possibly!


Below looks at MYL over the past 5-years-



CLICK ON CHART TO ENLARGE


Over the past year, MYL could be forming a bullish inverse head & shoulders pattern with a test of the neckline and falling resistance taking place at (1). If a breakout takes place here, it could attract buyers to this hard-hit stock.


Another thing that catches our attention is the large unfilled gap that took place back in 2015 at the $65 zone. Often times “Gaps” end up getting filled. If this gap would get filled, MYL would make some nice gains from current levels.


Full Disclosure- Members are long this stock with a tight stop.


 


Chart pattern analysis with brief commentary:   


There is a ton of news and opinions about markets and stocks that make the decision-making process more difficult than it needs to be.    


I believe the Power of the chart Pattern provides all you need to see what is taking place in an asset and determine the action to take.  


This approach has worked well for me and our clients and I encourage you to test it for yourself. 


 


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