Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs and balls. It offers drivers, fairway woods, hybrids, irons, wedges, and putters. The company also designs and sells golf accessories, such as golf apparel and footwear, golf bags, golf gloves, headwear, towels, umbrellas, eyewear, and travel gear under the Callaway Golf, Odyssey, and Strata brand names. In addition, it licenses its trademarks and service marks for use on golf related accessories, including golf apparel and footwear, prescription eyewear, golf gloves, umbrellas, and practice aids. The company sells its products directly to golf retailers, sporting goods retailers, and mass merchants; and to third-party distributors in the United States, as well as in approximately 100 countries worldwide.
Take a look at the 1-year chart of Callaway (NYSE: ELY) below with my added notations:
Over the last 10 months ELY has created a key level of support at
$7.50 (blue) and that $7.50 level is also the “neckline” support for the
stock’s head and shoulders (H&S) reversal pattern. Above the
neckline you will notice the H&S pattern itself (gray).
Remember, patterns such as an H&S need to confirm to have the
meaning that they imply. Confirmation of the H&S occurred when ELY
broke below its $7.50 support.
The Tale of the Tape: ELY has confirmed a head &
shoulders pattern. A short trade could be entered anywhere near $7.50
with a stop placed above that level. A break back above $7.50 could
negate the forecast for a move lower, thus a long position could be
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