Measuring The Head And Shoulders Top In Nova Measuring Instruments
Dragonfly Capital | Oct 15, 2014 01:15AM ET
Nova Measuring Instruments (NASDAQ:NVMI) provides metrology systems for thin film measurement that are used in chemical mechanical polishing and chemical vapor deposition applications. I have no idea what that means. But I do know that when I look at the chart of the stock price, traders have not been so happy with the company lately. In fact the chart suggests it could get a lot worse soon.
A Head and Shoulders top has appeared in the daily chart. To technicians, this pattern carries a price objective lower equal to the distance from the neckline to the top of the head. Using some of that metrology gives a price objective of at least 7.25. You can see that there may be some support that holds it at the 8.50 area from all that prior support in 2013. That is about halfway there from a break down under 9.75. The stock does not trade a lot of shares daily but it also has less than 1% short interest. Technical analysis is never a given, but about possibilities, so wait for the trigger before trading this Head and Shoulders Top.
Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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