Don't Ignore This Chart!

Reverse Head & Shoulders Pattern Worth A Gamble?

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Gambling stocks ($DJUSCA) have been BY FAR the worst performing industry group within the consumer discretionary sector over the past year, dropping 27.72%.  There are only two other industry groups in this sector in negative territory - clothing & accessories ($DJUSCF) and recreational products ($DJUSRP) which have fallen 8.44% and 2.40%, respectively.  Gambling stocks have rebounded an astounding 29% in the past month as they set up in a potential reverse head & shoulders pattern.  While the return over the past month has been very strong, a breakout of this pattern would measure another 140 points, or roughly 25%.  To confirm the pattern, look for a heavy volume breakout to clear neckline resistance.  Here's the chart:

Happy trading!

Tom

 

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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