The headline pattern on this daily timeframe is the head &...

The headline pattern on this daily timeframe is the head & shoulders. It’s a textbook example, especially with the neckline being overcome in a strong impulsive manner. The stock is looking overstretched over the short term, with our oscillator in the oversold position on both the daily and weekly charts. However, there is no divergence in place so it doesn’t guarantee a pause is imminent. Either way, if we measure the depth of the head & shoulders and project that distance from the breakout area it takes us to our target as annotated circa $2.40. I’m not viewing that projection as a strong reversal zone, it’s merely the target out of the reversal pattern. Bigger picture we expect that area to be overcome by a substantial margin.