Turtle Beach Corporation operates as an audio technology company. It provides various gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, and mobile and tablet devices under the Turtle Beach brand.
Take a look at the 1-year chart of Turtle (NASDAQ: HEAR) below with my added notations:
Over the past two months, HEAR had created a key level of support at $25 (green). That line was also the “neckline” for the stock’s head and shoulders (H&S) reversal pattern. Above the neckline you will notice the H&S pattern itself (red).
Confirmation of the H&S would occur if HEAR were to break the support, and lower prices would be expected from there. The stock confirmed that pattern yesterday.
The Tale of the Tape: HEAR confirmed a head & shoulders pattern. A short trade could be made on a rally up to $25 with a stop placed above that level.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT