Strong stock and has broken neckline before and recovered swiftly. CCI has not broken the neckline again as of yet.
When I see a possible second shoulder that fails to beat the prior high, I always take a second look if that 3rd leg has obviously turned down for the time being. Plus the retracements are often deeper than a price retracement in a strong uptrend. If this happens, maybe look for a neckline which is usually at the 1st shoulder retracement. A neckline is not always straight across and can slope.
A Head & Shoulders is not valid until price breaks the neckline with a confirmed downtrend. The neckline can be very strong support until broken. Many would wait for a retest of the neckline to prove that it is now resistance before shorting this pattern.
I measure the head to the neckline and project it downward from the neckline. Then I apply fib levels. I use the .382, the .618 and the .786 for targets 1. I also factor in a 100% fall. Targets 2 are valid only if targets 2 are passed. These are only ballpark guesstimates and levels of support are paramount.
No recommendation.
Short percent low at 1.03%.
Weekly Chart
When I see a possible second shoulder that fails to beat the prior high, I always take a second look if that 3rd leg has obviously turned down for the time being. Plus the retracements are often deeper than a price retracement in a strong uptrend. If this happens, maybe look for a neckline which is usually at the 1st shoulder retracement. A neckline is not always straight across and can slope.
A Head & Shoulders is not valid until price breaks the neckline with a confirmed downtrend. The neckline can be very strong support until broken. Many would wait for a retest of the neckline to prove that it is now resistance before shorting this pattern.
I measure the head to the neckline and project it downward from the neckline. Then I apply fib levels. I use the .382, the .618 and the .786 for targets 1. I also factor in a 100% fall. Targets 2 are valid only if targets 2 are passed. These are only ballpark guesstimates and levels of support are paramount.
No recommendation.
Short percent low at 1.03%.
Weekly Chart
Comment:
I am not picking on CCI (o: I just saw this and it was almost perfect in appearance. The two shoulders are almost the same height and close to the same distance from the head.