| Westel WSG 9/4/00
Head and shoulders reversal
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WSG looks to have completed a head and shoulders reversal pattern for a low
at around 50 cents. Such patterns are reliable and can be considered a
reversal of trend.
The head, really a double bottom at 50 cents, left shoulder at 65 cents,
right shoulder slightly lower at 64 cents (the shoulders don't have to be
level) and neckline around 80/82 cents. (No problems if you drew the
neckline sloping down to the right.) A break of the neck line,
highlighted, completes the pattern. Let's see if the trend continues back
up. Just below 50 cents a great spot for a stop loss, or even tighter at
64 cents if you wanted.
PS One of our subscribers picked up this pattern as the head was forming.
Well done to you. Great pick.