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Short-pattern

SIRI H&S PatternSiri has formed a head and shoulders pattern after a strong uptrend since it was $0.04 in February of 2009. Some notes: - Monthly indicators show the stock is well overbought and due for a pullback. Daily indicators show the stock is oversold after pulling back from $5.53 (52 week high). I would look for the stock to consolidate momentum near the neckline prior to pushing through. - Monthly chart shows 2 fibonacci retracement points that the stock has used as support and resistance and could fall to should the stock break the H&S neckline. Moreover, on the daily chart, from $4.05 the right shoulder has used the 78.6% retrace as resistance, telling me that if the neckline breaks, our first point of resistance may be at $4.96 (61.8% retrace). (Yea, my brain hurts from all these fib numbers too) - Volume is very telling here. Typically what you want to see in a H&S pattern is higher volume on the left shoulder, and possibly the head, with declining volume on the right shoulder's uptrend. Moreover, you'll notice that after the head formed (and frankly throughout the whole formation), negative days have shown higher volume than positive days. - Monthly chart also shows a shooting star doji (without the shaved head). However, "technically", a shooting star doji should open lower, so don't read too much into that. - On 3/22 the stock gapped lower and slowly covering the gap over the next few days before moving lower. No one likes a gap unfilled and this shows the stock is ready to move lower
NASDAQ:SIRIShort
by myfye13
AUDJPY: Potential bearish cypher patternLooks like the next hours or days a potential bearish cypher pattern is setting up and giving a nice opportunity to short at FX:AUDJPY . The XD 0.786 retracement right above last week's R2 pivot zone. So I'd suspect the potential reversal zone (PRZ) somewhere between last week's R2 pivot and this week's R1 pivot. Once the pattern successfully formed, check for signs of reversal: RSI overbought, indecision candle like Doji, pin bar, etc. before entering the trade. Once price exceeds X point, the setup is invalid.
Short
by xela75
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