A Near Term Shorting Opportunity for QIHU Until 19 Jan 2015
(1) Qihoo has been trading in an uptrend from May 2013, until Apr 2014 this Year. During this period price has risen from $42.20 to as high as 120.00s.
(2) After breaking the uptrend line mentioned in (1), Price consolidated sideways and subsequently formed an obvious Head & Shoulders Pattern. This bearish Pattern is confirmed when price broke out below the Neckline of $75.93 on 23 Sep 2014 and headed as low as $62.75 on 15 Oct 2014.
(3) Following the low of $62.75 on 15 Oct 2014, Price pulled back and was subsequently further resisted around Neckline price of $75.00, before continuing to trade lower.
Therefore from the observed points so far, we project that price is poised to breakout below $62.70, to continue the bearish trend established by the Head and Shoulder Pattern.
(Break Out Condition) When price can convincingly close below $62.70
(Stop Loss) Above $68.50
(Target) $42.20, based on minor Support levels
(Time Limit) All Short positions should be closed by 19 Jan 2015
Generally price break outs can only sustain momentum for short period of time, before retracement and pullbacks starts to occur. In other words, we estimate that the bearish breakout price action should complete and achieve its price targets by 19 Jan 2015.
(Risk) As always, there is always risk of a false breakout, coming from a bear trap.
References:
Head & Shoulder Patterns> investopedia.com/articles/technical/121201.asp
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(2) After breaking the uptrend line mentioned in (1), Price consolidated sideways and subsequently formed an obvious Head & Shoulders Pattern. This bearish Pattern is confirmed when price broke out below the Neckline of $75.93 on 23 Sep 2014 and headed as low as $62.75 on 15 Oct 2014.
(3) Following the low of $62.75 on 15 Oct 2014, Price pulled back and was subsequently further resisted around Neckline price of $75.00, before continuing to trade lower.
Therefore from the observed points so far, we project that price is poised to breakout below $62.70, to continue the bearish trend established by the Head and Shoulder Pattern.
(Break Out Condition) When price can convincingly close below $62.70
(Stop Loss) Above $68.50
(Target) $42.20, based on minor Support levels
(Time Limit) All Short positions should be closed by 19 Jan 2015
Generally price break outs can only sustain momentum for short period of time, before retracement and pullbacks starts to occur. In other words, we estimate that the bearish breakout price action should complete and achieve its price targets by 19 Jan 2015.
(Risk) As always, there is always risk of a false breakout, coming from a bear trap.
References:
Head & Shoulder Patterns> investopedia.com/articles/technical/121201.asp
Like it, Share it, Follow it~
Trading View: BreakOutArtist
StockTwits: stocktwits.com/BreakOutArtist
Twitter: twitter.com/BrkOutArtist
TradeHero: BreakOutArtist
Facebook: facebook.com/brkoutartist
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