ITT Corp (NYSE: ITT)

ITT Corporation designs and manufactures engineered critical components and customized technology solutions for the energy, transportation, and industrial markets. The company operates in four segments: Industrial Process, Motion Technologies, Interconnect Solutions, and Control Technologies. The Industrial Process segment manufactures industrial pumps, valves, and related equipment comprising vertical, axial flow, multi-stage, and other pumps; twin screw pumps, multiphase boosting system pumps, and progressive cavity pumps; and process valves, including industrial knife-gate and sanitary diaphragm valves. The Motion Technologies segment manufactures engineered and durable components comprising brake pads, shock absorbers, and damping technologies for the transportation industry. The Interconnect Solutions segment designs and manufactures engineered connectors and cable assemblies for applications in harsh environments. The Control Technologies segment provides engineered aerospace components and industrial products consisting of fuel management, actuation, and noise absorption components in the aerospace market, as well as a range of products that manage motion and absorb energy in various industrial markets.
To review a current H&S pattern on ITT’s stock, please take a look at the 1-year chart of ITT (ITT Corporation) below with my added notations:

ITT had rallied from a low of $25 last February to a peak of $45 just last month. Over the last 3 months the stock had created a very important “neckline” of support at $40 (blue). Above the neckline you will notice the H&S pattern itself (red). Confirmation of the H&S occurred earlier in the week when ITT broke its $40 “neckline”. So, the stock should be moving lower overall from here.

The Tale of the Tape: ITT confirmed a head & shoulders pattern. A short trade could be entered on any rallies up to or near the $40 area. A significant break back above $40 could negate the forecast for a move lower.
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