Thursday, December 08, 2005

Cute with a Capital Q


I'll stifle all the bearish hoo-ha for a day and mention one honey of a stock pattern - Qwest Communications (symbol Q). This is a fantastic inverted head & shoulders pattern with a good volume and price spike today.

I've mentioned this stock in the past, but I wanted to put out a reminder since it's clearly broken above its neckline at this point.

3 comments:

MadPP said...

Wow, Tim this doesn't seem too gigantic to be a H&S to you? (I always get hung up on Murphy/Pring definitions of 30-90 time periods blah blah blah)... also, it seems almost flat, you wouldn't consider the peaks not defined enough? A bit more and they would be non-existent ... I'm not the best at price patterns and would have never seen this one, but it seems the better a trader is the more comfortable they feel being liberal and "loose" with what they define as a formation of something (Steve Nison is very liberal in what he sees as a candle formation!)

Scottorama said...

Well... I thought the same... and I looked at the longer timeframe... looked like basic oscillation to me... :-) But, now a few days later, the price is up about 40-50 cents, or around 8-9%! :-)

Tim Knight said...

I hadn't heard there was anything wrong with gigantic patterns. In fact, patterns lasting just a few weeks or months don't do much for me. My view tends to be - - the longer the pattern, the bigger the breakout.