FETUSD H&S
Head and Shoulders Formation
Fetch.ai (FET) against the US Dollar (USD) has formed a classic head and shoulders (H&S) pattern, which is one of the most reliable reversal patterns in technical analysis. The price has recently broken below the neckline, a critical support level, and is now expected to retest the broken support structure to confirm the pattern's validity. This development suggests a potential shift in market sentiment from bullish to bearish, and it’s worth exploring the implications of this pattern in greater detail.
1. Breakdown of the Head and Shoulders Pattern
The head and shoulders pattern is a bearish reversal formation that typically occurs at the end of an uptrend. It consists of three distinct peaks:
Left Shoulder: The price reaches a high, retraces, and forms a trough.
Head: The price rallies to a higher high, surpassing the left shoulder, and then retraces again.
Right Shoulder: The price forms a lower high, failing to reach the height of the head, and then breaks below the neckline, which is the support level connecting the troughs of the left shoulder and head.
The breakdown below the neckline confirms the pattern and signals a potential trend reversal. The price often retests the neckline from below before continuing its downward move, which is what we’re currently anticipating in FET/USD, my area of immediate target is 0.80000.
What do you think of this analysis?
Fetch.ai (FET) against the US Dollar (USD) has formed a classic head and shoulders (H&S) pattern, which is one of the most reliable reversal patterns in technical analysis. The price has recently broken below the neckline, a critical support level, and is now expected to retest the broken support structure to confirm the pattern's validity. This development suggests a potential shift in market sentiment from bullish to bearish, and it’s worth exploring the implications of this pattern in greater detail.
1. Breakdown of the Head and Shoulders Pattern
The head and shoulders pattern is a bearish reversal formation that typically occurs at the end of an uptrend. It consists of three distinct peaks:
Left Shoulder: The price reaches a high, retraces, and forms a trough.
Head: The price rallies to a higher high, surpassing the left shoulder, and then retraces again.
Right Shoulder: The price forms a lower high, failing to reach the height of the head, and then breaks below the neckline, which is the support level connecting the troughs of the left shoulder and head.
The breakdown below the neckline confirms the pattern and signals a potential trend reversal. The price often retests the neckline from below before continuing its downward move, which is what we’re currently anticipating in FET/USD, my area of immediate target is 0.80000.
What do you think of this analysis?
Trade active
Trade closed: target reached
Target Reached !
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.