On our way to hit the 2 targets I posted about previously from former inv h&s neckline breakouts, algo has now brought price action above an even higher inverse head and shoulder neckline. Stoch RSI is pretty over extended at this point so it would not surprise me at all if we see a dip back down to retest the neckline or even a few wicks or a candle close below the neckline before we are ready to validate the breakout above this new neckline. Of course, it could also just decide it wants to pump all the way to our next measured move target with no correction at all. I will keep hodling, but if I was leveraged i would dial down a good portion of my leverage after hitting the previous targets and try to add it back in upon a successful retest of the new neckline as support…if we do dip below the neckline as long as it holds the 50ma as support any dip below should be temporary. We maintain overall support on the 50 and then solidify support on the white neckline here we will likely validate another inv h&s breakout by the time algo’s golden cross occurs. *not financial advice*
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As long as we maintain the neckline as support and dont go back below it the measured move target for the new bigger inv h&s will be 53 cents.
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As I was anticipating, we have retested the neckline. It is currently responding as support.
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As with most initial moves above a neckline price action has now dipped back below the neckline and in a quite bearish manner at that thanks to the blood moon lunar eclipse market carnage. Will have to wait and see if it can flip the neckline back to support and maintain that support for a few candle closes first to even consider it validating a breakout, but the good news is the pattern is still very much in play for now.
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The bloodbath that occurred during the blood moon capitulation caused algo price action to tank below the head of this pattern there by nullifying the pattern. This inv h&s is therefore no longer valid. And the price action above the neckline was simply a fakeout.
