AECOM Technology Corporation, together with its subsidiaries,
provides professional technical and management support services for
public and private clients in worldwide. The company operates through
two segments, Professional Technical Services (PTS) and Management
Support Services (MSS). The PTS segment offers planning, consulting,
architectural and engineering design, and program and construction
management services for a range of projects, including highways,
airports, bridges, mass transit systems, government and commercial
buildings, water and wastewater facilities, and power transmission and
distribution. The MSS segment provides program and facilities management
and maintenance, training, logistics, consulting, technical assistance,
systems support and integration, technical personnel placement, and
field services primarily for agencies of the United States government.
ACM has confirmed a head and shoulders (H&S) pattern. Please take
a look at the 1-year chart of ACM (AECOM Technology Corporation) below
with my added notations:
After going almost nowhere this past year, ACM created a key level of
support at $28 (blue). That $28 level was also the “neckline” support
for ACM’s H&S reversal pattern. Above the neckline you will notice
the H&S pattern itself (red).
Remember, patterns such as an H&S need to confirm to have the
meaning that they imply. Confirmation of the H&S would occur if the
stock were to break below its $28 support, and as you can see, ACM did
exactly that last week.
The Tale of the Tape: ACM has confirmed a head &
shoulders pattern and should be moving lower. A short trade could be
entered on any rallies up to or near the previous $28 level. A break
back above $28 would negate the forecast for a move lower and create an
opportunity for a long trade.
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