Measuring the Head and Shoulders Top in Nova Measuring Instruments

• Posted by Greg Harmon
• on October 14th, 2014

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Nova Measuring Instruments provides metrology systems for thin film measurement that is 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.

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