Many times it has been said if you turn a chart upside down you can get a good perspective. Perhaps no better is this seen with the bullish inverse head and shoulders pattern. It is the direct opposite of the bearish head and shoulders pattern, yet the measured moves are calculated in the same fashion. Take the depth of the head and add that number to the breakout above the neckline for your projected move. Below are three recent examples, two of which have not been taken out and one which CLOSED just pennies through its neckline.

In our Thursday 8/18 Game Plan we looked at ALK. Stocks that can be bought as they take out bullish inverse head and shoulders patterns are ALK. ALK is a best in breed airline play down 16% YTD and 15% over the last one year period and sports a dividend yield of 1.7%. Earnings have been decent with gains of 1.9, 8.1 and 1.7% on 7/21, 1/21 and 10/22 and a loss of 2.7% on 4/21. The stock is higher 4 of the last 7 weeks and all seven have CLOSED within or at highs for the weekly range. Enter with a buy stop above inverse head and shoulders pattern at 68.15 which carries a measured move to 82.

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