For today's chart we've chosen to take a look at General Mills Inc.
) because a well-formed head and shoulders pattern
has appeared on the chart. This technical pattern is a staple amongst short-term traders and is used to spot a potential shift in a prolonged uptrend. As you can see from the chart below, the neckline
, which is created by drawing a trendline between the lows, is the last level of support that stands in the way of a sharp decline. We'll watch for a break below $54.75 and will set our short-term target at the 161.8% Fibonacci Retracement
level (currently near $50.50).