Gambling stocks ($DJUSCA) have been BY FAR the worst performing industry group within the consumer discretionary sector over the past year, dropping 27.72%. There are only two other industry groups in this sector in negative territory - clothing & accessories ($DJUSCF) and recreational products ($DJUSRP) which have fallen 8.44% and 2.40%, respectively. Gambling stocks have rebounded an astounding 29% in the past month as they set up in a potential reverse head & shoulders pattern. While the return over the past month has been very strong, a breakout of this pattern would measure another 140 points, or roughly 25%. To confirm the pattern, look for a heavy volume breakout to clear neckline resistance. Here's the chart:
Happy trading!
Tom
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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