Inverse Head and Shoulders with confluence observed!
Updated
Hi everyone!
Both of these Inverse Head and Shoulders patterns show striking similarities, presenting what could be a compelling buying opportunity before a potential rally. We’re looking at a 40% implied move based on this pattern. However, a whole leg up could bring price toward $50-$64 Is this current pattern also the key reversal moment?
Technical Insights
The chart is suggesting a high probability of a breakout. The potential dynamic after this move, if it proves true, could signify a breakout from the prevailing downtrend.
Divergence Analysis: The divergence has held up well on the 30-minute chart. I monitor this closely to manage the trade on a micro level and spot any signs of weakness.
RSI Oscillations: Note the similarities in the RSI oscillations. The RSI exhibits compelling confluence, also displaying multiple bullish signals on the Stochastic including an overlaid double bottom and a cup and handle pattern beneath a bull flag.
Key Levels
The critical point to watch is the Neckline of the Inverse Head and Shoulders pattern around the $30.70 level. I have set an alert to confirm the pattern upon breaking the neckline.
Fundamental Strength
The fundamentals of this company speak for themselves, It has proven to be a virtually unheard-of market leader. Keep an eye out for the financial results on August 6.
Thank you for your time and happy trading!
OnePath
Both of these Inverse Head and Shoulders patterns show striking similarities, presenting what could be a compelling buying opportunity before a potential rally. We’re looking at a 40% implied move based on this pattern. However, a whole leg up could bring price toward $50-$64 Is this current pattern also the key reversal moment?
Technical Insights
The chart is suggesting a high probability of a breakout. The potential dynamic after this move, if it proves true, could signify a breakout from the prevailing downtrend.
Divergence Analysis: The divergence has held up well on the 30-minute chart. I monitor this closely to manage the trade on a micro level and spot any signs of weakness.
RSI Oscillations: Note the similarities in the RSI oscillations. The RSI exhibits compelling confluence, also displaying multiple bullish signals on the Stochastic including an overlaid double bottom and a cup and handle pattern beneath a bull flag.
Key Levels
The critical point to watch is the Neckline of the Inverse Head and Shoulders pattern around the $30.70 level. I have set an alert to confirm the pattern upon breaking the neckline.
Fundamental Strength
The fundamentals of this company speak for themselves, It has proven to be a virtually unheard-of market leader. Keep an eye out for the financial results on August 6.
Thank you for your time and happy trading!
OnePath
Note
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