Let's talk about this with more details. I should say that from my point of view, it's not the perfect chart pattern. It's not so clean, but still, we can find the shoulders as two swing highs which are between the head - the higher swing high. I don't like the candle in the left shoulder as the tails are too long and they tell us about emotions in the market during these 4 hours. I would like not to count these emotions and focus on the main market movements. That's why I use other levels for drawing the chart pattern, and I think they are more reliable.
The price broke the neckline of the pattern, and we got a confirmation. From this moment we can consider pattern as the confirmed reversal pattern. We can place a target for the downward movement based on this pattern and it will be at 4600.00 level. If the price bounces from the neckline and SMA50 and drops below 5000.00 level, we should be ready to see the falling to the target zone at 4600.00 level.
And what do you think about a possible chart pattern based on the 4H timeframe? Do you see it also or you think I'm wrong with drawing it based on these swing highs? Let's discuss in the comments. Share your ideas and thoughts about the further market movements below this post. I will be grateful if you support my work by your LIKEs!
The price moved about the right shoulder = the reversal pattern becomes a continuation one. Watch for the further market movements.
A Head and Shoulder pattern is bearish. But the bulls have managed to reject the bears to go all the way down and form a horizontal neckline.
We could draw a diagonal neckline, which would be valid, but when its diagonal it's not as powerful, and we would not drop as much. Furthermore, you can see how the potential right shoulder is prolonged. That is also a bullish or a less bearish sign you can say compared to a steep reversed V-shape form.
Also the volume distribution doesn't comply with a normal HS Pattern.