as you can see it was a breakout from trend line and a pullback on it, we can consider that a Head and Shoulder formation only if it breaks the neck line with strong close below it which is very possible due to situation.
after breakout from neckline we can go short or wait for pullback on it and then enter short position.
we can calculate a target by measuring the high point of the head to the neckline, This distance is approximately how far the price will move after it breaks the neckline.
and if we measure this distance its about 250 pips.
also we can use Fibonacci retracement tool for set better targets , as you can see level 38% is near to our 250 pips distance and we can call it our first target.
it is possible for price to retrace 50% or even 61.8% so they are our next targets.
after breaking the neck line you can enter position and set your stop loss above the neck line based on your risk management and entry point.
so our targets are : 122.3000 , 120.8000 and 119.3000 and you can set stop loss 40 to 80 pips above the neck line.
don't forget to like and leave me any comments, questions or observation , thank you.
after breakout from neckline we can go short or wait for pullback on it and then enter short position.
we can calculate a target by measuring the high point of the head to the neckline, This distance is approximately how far the price will move after it breaks the neckline.
and if we measure this distance its about 250 pips.
also we can use Fibonacci retracement tool for set better targets , as you can see level 38% is near to our 250 pips distance and we can call it our first target.
it is possible for price to retrace 50% or even 61.8% so they are our next targets.
after breaking the neck line you can enter position and set your stop loss above the neck line based on your risk management and entry point.
so our targets are : 122.3000 , 120.8000 and 119.3000 and you can set stop loss 40 to 80 pips above the neck line.
don't forget to like and leave me any comments, questions or observation , thank you.
Comment:
broke the neckline, going for first target.
Comment:
You can close now with 210 pips profit but you can also wait for market to gain momentum again and go through our all targets.
