BAL - Chart, page-622

@hardihood, it's not my theory bud, it's an industry-wide pattern that has been used for decades.

@hillsman, interesting that I have exactly the same support zone as you which is a confluence level of 50% ATR and extensions from the head and shoulders, however, any breakdown of $9 I would consider a failure of the setup.

@JF2013 indeed a head and shoulders pattern and we have dropped ~40% since breaking the neckline of the head and shoulders thus confirming the pattern, the selloff will eventually exhaust itself. Most of the time, it will extend 100% of the neckline range once confirming the pattern, in this case, that would land us at around $5.70. However, the fact that we're forming a double bottom at an important natural level and 61.8% of the neckline extension could indicate a reversal and change in sentiment.

This is my subjective interpretation of the situation. Take from it what you want.

Cheers