SPDR S&P 500 (SPY)

[learningboutinv]

Actually, I was a bit off. May be around ~25.96.

The neckline looks to be around ~21. So if this inv. H+S plays out, take the neckline (~21) - the bottom of the head at (16.04)= 4.96. Then take the difference (4.96) + neckline (~21) = 25.96.

We need to break the neckline at ~21 though.

"The slope of the neckline will affect the pattern's degree of bullishness: an upward slope is more bullish than downward slope."

"Price Target: After breaking neckline resistance, the projected advance is found by measuring the distance from the neckline to the bottom of the head. This distance is then added to the neckline to reach a price target. Any price target should serve as a rough guide, and other factors should be considered, as well. These factors might include previous resistance levels, Fibonacci retracements or long-term moving averages."

Link to I-H+S
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:head_and_shoulders_b