Head and shoulders formation to likely play out
Updated
Sometimes we get stopped out for a small loss and take a better entry higher. That's what's happening here.
This head and shoulders has been forming for sometime and is converging with some other short term bearish indicators to make for a high probability of us testing the neckline or possibly forming a wick beyond it.
Reasons to enter short here:
1. TD Sell counts on multiple time frames most notably 4h, 8h, and 12h. With 4h being the most extended.
2. RSI closing back in on overbought again on most if not all sub daily time frames.
3. Heavy Resistance in this zone
Entry: 120xx-121xx
SL: 125xx
TP: Neckline or slightly below it. 109xx-111xx
Please do your own TA and do not take this as fact as I am human and wrong sometimes.
Goodluck out there.
This head and shoulders has been forming for sometime and is converging with some other short term bearish indicators to make for a high probability of us testing the neckline or possibly forming a wick beyond it.
Reasons to enter short here:
1. TD Sell counts on multiple time frames most notably 4h, 8h, and 12h. With 4h being the most extended.
2. RSI closing back in on overbought again on most if not all sub daily time frames.
3. Heavy Resistance in this zone
Entry: 120xx-121xx
SL: 125xx
TP: Neckline or slightly below it. 109xx-111xx
Please do your own TA and do not take this as fact as I am human and wrong sometimes.
Goodluck out there.
Note
Calculating the H&S correction would put us near the CME Gap and I doubt we see that. 12454 High, 11120 Neckline
A projection of 1334 to the head from neckline or a correction from neckline to 9786-9800 pending big sell volume
Note
This is a highly unlikely correction number given the support at 10.5k and other levels, But given the CME gap it's not impossibleNote
textbook
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