FMCN Head and Shoulders

I’m seeing a head and shoulders technical pattern forming on the FMCN - FocusMedia Holding Ltd. daily chart. I’ve set an alarm near 36 to monitor. Price projects down to 31 if the pattern plays out. There’s a triple bottom there now. It’s been my experience, that triple bottoms don’t hold. Earnings are due the end of May on the stock.

I took a quick day trade in FMCN this morning. Focus Media stalled at 50dma and 20dma resistance. The 50dma is starting to trend down, with a lower high on the weekly and daily charts. When the stock stalled, I waited for a reversal bar on the 5-minute chart. That candlestick gave me a risk R of .30. With this trade a mini reverse capitulation play, I just wanted to score a quick R. The big picture has a bearish outlook, but today has bullish posture, so I wanted to be quick when fighting that trend. 1/2 was covered for 1R, but the other half stopped near break even. Consistent singles will get you into the hall of fame.