Dow Inverse Head And Shoulder Pattern

Dow broke through 12800 points on Friday boosted by better earnings result from Google which rose about 20%.




The Dow chart is looking like a breakout of an inverse head and shoulder pattern. During the beginning of the week, it looked as if the right shoulder would not be formed. However due to better earning results, the index managed to claw back and break out of the 12800 level which is where the neckline resides (point C).

The price objective based on this pattern is (B-A+C) which gives an objective level of 13950.