Technical Analysis of Financial Markets

Thursday, June 22, 2006

Insteel Industries, Inc. (IIIN) - Inverse Head & Shoulders

Breaking above the 50-day moving average, IIIN looks like it has formed a bullish inverse Head & Shoulders pattern. A break of the $22 Neckline resistance will confirm the pattern at which point a buy signal is generated. For a lower-risk entry, look for a possible pullback to the Neckline after the breakout which should act as support as "old resistance becomes new support". Price projection: $28 - distance from the Head to Neckline projected upwards from the Neckline, filling a gap along the way.

1 comment:

AJ said...

Hi Steve,
That's a beautiful chart. Thanks for covering it. I wonder if the beginning of the gap (ie 24) will be a huge resistance though.