Last up is
(NXPI - Get Report)
, a Dutch chipmaker that's forming a very similar setup to Deutsche Bank right now. Like DB, NXPI is forming a head and shoulders topping pattern, in this case with its neckline at the $22 level. A breakdown below that line means that NXPI is a short candidate.
Near-term support at the 200-day moving average (currently around $19) looks like a realistic target for this setup right now - on the neckline break, I'd suggest planning on exiting ahead of hitting that potential glut of demand for shares.
Even though the head-and-shoulders (and its inverse) is likely the most well known technical pattern, it's still a valuable one: an academic study conducted by the
Federal Reserve Board of New York
found that the results of 10,000 computer-simulated head-and-shoulders trades resulted in "profits [that] would have been both statistically and economically significant."
That's a good reason to keep an eye on both NXPI and DB this week.
To see this week's trades in action, check out the
Technical Setups for the Week portfolio
-- Written by Jonas Elmerraji in Baltimore.
Follow Stockpickr on
and become a fan on