ITW Revisited

Posted by downtowntrader | 8/13/2007 09:42:00 PM | 2 comments »

Stock Chart Analysis ITW

Illinois Tool Works Inc. (Public, NYSE:ITW)

I posted on ITW last night and a friend asked me about a possible head and shoulders on it. Although I failed to mention it last night, some of the best trades occur when a chart pattern fails to move to fruition. This is because many participants get in early assuming the pattern will develop, but if it fails, they scramble to get out of the trade along with new traders getting in. A head and shoulders isn't valid until a close below the neckline, and ITW managed to dip under it and close above it. Today it made a higher daily high, although it failed to follow through. This is one of those trades that is so close to working for either side, that once it starts moving one group of traders will be caught off guard.

Good Trading,


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  1. Anonymous // 6:53 PM  

    Today it broke..

  2. downtowntrader // 9:07 AM  

    Yes it did. The projected target takes it into the 49 area. Thats why this is a game of probabilities, nothing is ever guaranteed.