Developing Inverted H&S Pattern with 22% upside potential
As you can see on the chart there is a developing head and shoulders pattern. If the last leg developed perfectly, we can expect a potential 22% to the upside to the 1.618 and a further pump to the 2.618 which is exactly same as the head to the bottom distance. A buy stop order can be placed just above the neckline of the inverse head and shoulders pattern. This ensures the investor enters on the first break of the neckline, catching upward momentum. A suitable profit target can be ascertained by measuring the distance between the bottom of the head and the neckline of the pattern and using that same distance to project how far price may move in the direction of the breakout.
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