Target Corporation (TGT) has been trading near 52-week lows over the last 60 days, but has met support at 50. This support at 50 looks to be the start of a double bottom formation (but could be triple bottom) and indicates TGT is setting up for a turn around. The proper way to play a double bottom (or triple) is to wait for a resistance break. In the case of TGT, that break would occur at 60. Keep in mind that this is only a potential setup and should only be played on a resistance break if the pattern continues to set up.



Power Shares QQQ Trust ETF (QQQQ) could be creating a Head and Shoulders reversal pattern. This Head and Shoulders indicates QQQQ could be headed lower over the next few months. Considering the market over the last few months, I wouldn't short into a neckline break. I would make it break the neckline on heavy volume before shorting or buying puts.



In the last 50 days, Morgan Stanley (MS) has broke through the neckline of its Head and Shoulders reversal. After breaking out, MS has consolidated below its neckline with support at 48. The measured move from the Head and Shoulders break indicates MS will drop below 40, but considering the stock market over the last few weeks I would wait for MS to break 48 support before shorting or buying puts.



Freeport-McMoran Copper & Gold (FCX) looks to be created a Head and Shoulders reversal pattern. This Head and Shoulders reversal pattern indicates FCX could fall as much as $30 from current levels. In order for this to be a reversal pattern, FCX will have to break its neckline on heavy downside volume.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.