AECOM Technology Corp (NYSE: ACM)

AECOM Technology Corporation, together with its subsidiaries, provides professional technical and management support services for public and private clients in worldwide. The company operates through two segments, Professional Technical Services (PTS) and Management Support Services (MSS). The PTS segment offers planning, consulting, architectural and engineering design, and program and construction management services for a range of projects, including highways, airports, bridges, mass transit systems, government and commercial buildings, water and wastewater facilities, and power transmission and distribution. The MSS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance, systems support and integration, technical personnel placement, and field services primarily for agencies of the United States government.
ACM has confirmed a head and shoulders (H&S) pattern. Please take a look at the 1-year chart of ACM (AECOM Technology Corporation) below with my added notations:

After going almost nowhere this past year, ACM created a key level of support at $28 (blue). That $28 level was also the “neckline” support for ACM’s H&S reversal pattern. Above the neckline you will notice the H&S pattern itself (red).
Remember, patterns such as an H&S need to confirm to have the meaning that they imply. Confirmation of the H&S would occur if the stock were to break below its $28 support, and as you can see, ACM did exactly that last week.

The Tale of the Tape: ACM has confirmed a head & shoulders pattern and should be moving lower. A short trade could be entered on any rallies up to or near the previous $28 level. A break back above $28 would negate the forecast for a move lower and create an opportunity for a long trade.
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