Sears Chart Forming Head and Shoulders Pattern
Sears Holdings Corporation (NASDAQ:SHLD) appears to be forming a head and shoulders stock chart pattern. This could spell doom for investors in Sears if the pattern completes historical trends for it. Now don’t get me wrong, I like Sears Holdings Corporation (NASDAQ:SHLD) as a company because they have good products (i.e. tools), but if the stock were about to tank I would be concerned as an investor.
The head and shoulders pattern is generally a bearish reversal pattern believed to be relatively reliable. It is a technical analysis stock chart pattern used to describe a chart formation in which a stock's price rises to a peak and subsequently declines, then rises above the former peak and again declines, and finally rises again but not to the second peak, and declines once more. The first and third peaks are shoulders, and the second peak forms the head. Sample Pattern from chartpatterns.com:
Good luck to investors playing Sears Holdings Corporation (NASDAQ:SHLD). The market is making it a tough go today and has driven SHLD down -1.3% to $70.00. Obviously there is no crystal ball to investing, so it is up to you to make investing decisions and protect your money.
Disclosure: No positions in SHLD.