qube h&s

Am I correct? Do I see a shallow Head and Shoulders in the QUB shareprice?

Starting in Dec, there is a flat base line at $1.70. the first shoulder is a bit wonky, but from there on it is classic. (Viewed as a candle, the early outliers disappear.)

The SP has definitely weakened. At these prices the shares are priced for growth and this seems to be slowing, especially with the problems with the Fed Gov not allowing the short rail corridor to connect their Moorebank site to the main southern rail line.

Back to technicals, yesterday the SP broke below the $1.70 base line and has since returned to it in a classic H&S move. Its a shallow H&S and the retreat could be expected to only go to $1.60. However, there is a long term rising trend line from mid 2009. This is currently about $1.48.

The half year results out on about 25 Feb will be crucial. This will give the first 'clean' result after the restructure in late 2011.

PS: SP has just gone ABOVE $1.70. Maybe I am wrong?

I sold out in the mid $1.70s based on the weak fundamentals at those prices. I'd consider buying back in some of those shares at about $1.50 and hold some cash back in case the long term trend line is breached.