RYAM confirms H&S topOver the past 2 months, RYAM had created a key level of support (green) at $9, and that level was also the “neckline” support for the stock’s head and shoulders (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 occurred when RYAM broke below the $9 level earlier this week.The Tale of the Tape: RYAM confirmed a head & shoulders pattern. A short trade could be entered anywhere near the prior support with a stop placed above that level. A break back above $9 could negate the forecast for a move lower, thus a long position could be considered instead. 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!Good luck!Christian Tharp, CMT@cmtstockcoach