extension of the previous head and shoulders pattern
Updated
It appears to be an extension of the previous head and shoulders pattern.
I cut my losses at 61450 and re-entered at 61650.
The target, 60450, must be reached, and afterwards, if 61000 retests successfully following a retracement, the parallel might be broken, potentially leading to a first target of 59700 before possibly dropping further to 57600.
Initially, my plan is to sell half at 59700 and continue holding the rest with a stop loss at 61800.
Note that if the parallel breaks and then rebounds, there's a significant chance it could quickly reach the upper parallel channel at 62100, so this requires caution.
I cut my losses at 61450 and re-entered at 61650.
The target, 60450, must be reached, and afterwards, if 61000 retests successfully following a retracement, the parallel might be broken, potentially leading to a first target of 59700 before possibly dropping further to 57600.
Initially, my plan is to sell half at 59700 and continue holding the rest with a stop loss at 61800.
Note that if the parallel breaks and then rebounds, there's a significant chance it could quickly reach the upper parallel channel at 62100, so this requires caution.
Note
Since the hourly candlestick has maintained the parallel, it could break through and reach 62100. After observing several 15-minute candlesticks, I will set an appropriate stop loss and target price before re-entering.If the next hourly candlestick is above the parallel, I will consider it confirmed and take profits.
Note
There is strong resistance at 60700. I will decide whether to enter after breaking through this level, or I will enter after confirming the break and a subsequent retest.Note
The hourly candlestick has dropped back below the resistance line. I will decide on the direction after seeing if the next candlestick confirms or rejects this move.
If it confirms, I think it's safe to set the stop loss at the right shoulder at 61750 and target the first goal smoothly.
If it keeps getting rejected instead of confirming, I think there's still a desire for an upward move.
Note
Personally, if the strong resistance line at 60700, which connects the previous two lows, is broken and closes above it, I would consider broken pallarell line confirmed.In that case, setting the stop loss at 61750, I expect a smooth progression towards the parallel target values of 59800 and 57600.
Of course, there might be a rebound at the head and shoulders target of 60400, but cause many people suspect the parallel has been broken, I anticipate a drop to 59800 without much resistance
Note
At the end of the hourly candlestick, it is showing whether it will go up or down. In my opinion, if it breaks and closes below 60700, I suspect that the long correction period will end and it will likely move downwardsNote
The hourly candlestick ultimately failed to break through and ended, creating a strong wave heading upward to retest. At this point, I'll leave a partial short position and close it, then watch and re-enter around 61400 if it reaches that level.
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