Inverse Head And Shoulders in the Oil Services
As I've tweeted about a few times, the market has numerous stocks set up with inverse head and shoulder formations. These are usually indications of a bullish pattern where a stock or ETF is the process of a significant breakout off a bottoming process. In most cases, the breakout corresponds with the lows from the July/August plunge. Assuming stocks form this bullish technical indicator, it can be expected to reach back to levels where the plunge began. In some cases this calls for a major rally. Naturally that doesn't seem likely these days with the European debt crisis and fears of a major slowdown in China. Unfortunately for most investors that is exactly why and when it happens. The least amount of investors expect a major rally in stocks so they all pile on the upswing. It was interesting tonight to see Cramer focus on the potential H & S in the Oil Services ETF (OIH). Having not seen much mention of this occurence in other stocks, I wasn't beginning to wond...