Recently, a bullish inverse continuation head and shoulders pattern triggered and confirmed in Peabody Energy Corp. (BTU). The minimum expected price objective is $72.50, obtained by measuring the height of the pattern and expanding higher by that same distance, from the trigger. The daily chart below outlines the price pattern, demonstrates important volume characteristics that are present and illustrates how the MACD indicator adds weight to the bullish evidence.
Target: $72.50, Protective Stop: Confirmed move below the neckline, Trail stop: Confirmed move below the minor trendline, which can be drawn by connecting the lows of the head to the lows of the right shoulder and extending.
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Disclaimer: The information contained herein is not guaranteed. This is not a solicitation of any order to buy or sell. This material is based upon information that I consider to be reliable, but I do not guarantee its completeness or accuracy. Assumptions, opinions and recommendations contained herein are subject to change without notice, and I am not obligated to update the information contained herein. I have a position in BTU and SPY. This communication, including any attachments, is for the exclusive use of the intended recipient(s) and/or the intended recipient’s designees. Any use, retention or dissemination by a person other than the intended recipient is strictly prohibited. If you are not the intended recipient or designee, please notify the sender immediately by return e-mail and delete/destroy all copies of this communication.