mercredi, mars 14, 2007

Head and Shoulders

In attachment a nice collection of fresh head & shoulders formations.
okay, the right hand shoulders are small in comparison with the left hand shoulders, but they are equal in heighth in most cases; so for me, these are valid tech formations, with the exception of the financials,(chart 3) they haven't broken their necklines (yet?).
But the fact that an overwhelming majority of analysts still sees the recent decline as a healthy, or a 'typical' bull market correction (what a difference with the other corrections in 2004 and 2006) makes me pay attention to the downside.
AEX (chart1 and 2): crucial support at 470/460; (470 = neckline HS & 460 = LT support line tested 4 times) falling below 460 means next target 410.




Karel Debie-Technical Analyst.

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