Multiple patterns are forming

Aug 5, 2021

Greetings everybody,

So, the H&S pattern that we've discussed last time stands in progress. But, as we have NFP report on horizon - few nuances exist now. First is, if you already have taken bearish position with the pattern - move stops to breakeven.

If NFP will be poor (and chances for that are significant because of poor ADP recently), then market could show another upward swing to 5/8 resistance area before final reversal. Here it could take the shape of "222" Sell, while on daily chart in fact we have B&B "Buy" pattern. In a case of positive NFP - downside action should continue directly. Anyway:

If you would like to take long position - this is good chance to try with stops below recent lows. Potential risk is minimal now. Target is 5/8 resistance around 40.67$.

For new short entry I would wait for NFP release, as chances on upside AB-CD action now stands solid.

Aug 6, 2021

Note

guys, upward pattern is done perfectly, but do not sell by far, H&S could fail as we have bullish grabbers on daily chart, suggesting action above the head.