Head-and-shoulders bottoms are reliable chart patterns that sport a low failure rate and good average rise.
Price trend downward leading to the pattern, the shape looks more like a 3-valley pattern with the middle valley below the others. The pattern should look like an inverted person's head and shoulders, proportional, and not lopsided.
The two shoulders should bottom near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow).
The pattern confirms as a valid one when price closes above a down-sloping neckline or above the right armpit when the neckline slopes upward.
Price must have something to reverse, so if the decline leading to the pattern is small, expect a small rise.
Price will likely drop back a bit and consolidate more to the right side so as to complete the right shoulder.
VERDICT:
BUY: $38.06
SELL: $43.4 up to $50
STOP LOSS:$32
RISKY TRADE:
Adventurous can buy within $28.2 down to $27.619 and hold it for more upside with adjusted stop loss.
Remember TECHNICAL ANALYSIS is all about probabilities and based on previous market performance(not all about certainty)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.
Price trend downward leading to the pattern, the shape looks more like a 3-valley pattern with the middle valley below the others. The pattern should look like an inverted person's head and shoulders, proportional, and not lopsided.
The two shoulders should bottom near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow).
The pattern confirms as a valid one when price closes above a down-sloping neckline or above the right armpit when the neckline slopes upward.
Price must have something to reverse, so if the decline leading to the pattern is small, expect a small rise.
Price will likely drop back a bit and consolidate more to the right side so as to complete the right shoulder.
VERDICT:
BUY: $38.06
SELL: $43.4 up to $50
STOP LOSS:$32
RISKY TRADE:
Adventurous can buy within $28.2 down to $27.619 and hold it for more upside with adjusted stop loss.
Remember TECHNICAL ANALYSIS is all about probabilities and based on previous market performance(not all about certainty)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.