Monday, November 29, 2010

Watchlist - TIE (short)

Here is a good short setup for the day/week

TIE - Titanium Metals


I highlighted the head and shoulders pattern that has formed and confirmed.  This is a perfect example of the head and shoulders pattern because it is well formed, over a long period of time, the right shoulder is lower than the left shoulder, and it comes at the top of a big run up.  We see a good consolidation happening as it tries to break down.  This is a good sign for a short setup.  You can do a conservative stop-loss just above the 200 day moving average or even extend it a bit further out for a more aggressive approach.

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