I am considering a possible Head & Shoulders (in gold on my chart)
This H&S could then be the head of an extended H&S (in red on my chart)
This would result in a possible pullback under its support becoming resistance
Then, direct consequence of these reversal patterns that are H&S : a bearish retracement of height similar to the height of the H&S
Note that these two H&S are objectively very clean with: - horizontal support-resistance - shoulder height equal to half the height of the head
This is an hypothesis, not to be confused with a possible bear trap Hypothesis that will be invalidated if the price takes off again... ...above the peaks of "the shoulder" then the "head" (which will not be then) In the opposite case (validated H&S), I propose on the drawing an action plan
This analysis is in line with my previous "related ideas", listed below: previous warning of bull trap (fractal 2017) + RSI overbought + 2nd bottom in august
looks like you could draw that left shoulder all the way down to 7k if you wanted...
MaxHodler
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@pacman7331, I started from the principle that these H & S take supports on the top of the bear trap (May 12, 2019)
but actually it is questionable, thank you! :)
MaxHodler
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@pacman7331 a constructive remark that deserved a fix, thank you ;)