Submitted by Luck o the Irish
Clearly we can see the Left Shoulder, Head, and Right Shoulder. The approximate length between the $280 to $315 (neckline to head length of $35) run gives us a possible down leg target of $245 which would also coincidentally fill the gap from a previous earnings announcement. We have a descending/downward channel that clearly shows momentum and volume. We also have pushed open the lower bollinger band, which predicates a move lower. On the 16th, we had the 10 day MA cross below the 20 day MA, and now acting as an upper resistance. The neckline at $280 is also a strong resistance level, and also coincides with the resistance level of the downward channel. The RSI (at the top) is clearly in a downward channel showing further bearish behavior and the OBV is showing no accumulation. There is two ways you can short this bearish pattern and that would be to short a high volume clear breakdown below $262 or a good short entry would be to short MA around $275-280 with a stop around $282-285. Look to short the rip or sell the rip (you can start by cost avg in and add to it as you receive confirmation of your plan) on a cycle high on the RSI or other oscillator into resistance, which would be the best entry for a short here. This could be setting up as a good short candidate on a market bounce or retracement to $280. Remember to run technicals through support and resistance lines for higher probability trades. Supply and demand dictate prices especially in the short term. By buying oscillator lows on strong support levels rather than resistance levels you increase the chance for a favorable entry. Remember to plan the trade and then trade the plan!
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