DF Dean Foods Weekly Chart Potential Inverted H&S Island Reversal

DF Dean Foods weekly chart showing the positive divergence bounce off the bottom in October-November 2010. Price is having trouble getting above the horizontal resistance at 10.75. A path of least resistance leads down to test the 20 MA at 9.3 which would provide an opportuinity to create an inverted head and shoulders as shown by the pink lines. With a head at 7, neckline at 12, that is 5 difference, so a target of 17 would be projected should the inverted H&S develop. The price from 12.5 and lower, all this action for the last year, creates an island so a sudden jump to a price of 15 and higher, an island reversal, is in play.

The chart is agreeable to more upside since the indicators show a long and strong profile, so after a little pull back to 9.5, maybe 9.3, price should be good to go, moving up thru 10.75, 12.00, 12.50, 15.00 and 17.00. In a sea of terrible broad market charts these days, DF is one that should buck the trend, at least weather the storm a bit better, than most other stocks, moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.