Victrex (GB): Major Reversal PatternThe daily chart below says is all: a large Head&Shoulder reversal pattern is unfolding. Note that the location on the weekly chart is excellent: at the and of a large uptrend and symmetry is pretty decent.
Focus on the neck line at 2430. Clearing this level triggers a sell signal targeting ~2100. Interestingly enough, this level is virtually equal to the 162% extension level (@2094) making it particular reliable. ‘Officially’ stops should be placed above the right shoulder, but a bounce that high – especially after a breakout below the neck line – is unlikely and an absolute sign of weakness. Offensive investors should already get into partial shorts before the breakout to maximize P/L ratio’s. The generally bearish market sentiment more than justifies this aggressive stance.
Primary trend: neutral
Outlook: major reversal pending, negative < 2430
Strategy: short entry < 2430
Support: 2430 / 2290 / 2100*
Resistance: 2605 / 2440+
Outlook cancelled/neutralized above 2605
LSE:VCT
