The stop-loss that I set for myself for the H&S invalidation play was absolutely obliterated today. We have broken below both the neckline of the head & shoulder and the support of the bullish channel. This puts the level of $84 to $110 absolutely in play.
Unless we are able to break back above the bullish channel and the neckline, the H&S pattern will complete itself. The daily RSI may be in the oversold territory now, but considering the nature of our correcting market, $CRSP earnings miss, ARK not adding to their position, lack of short-term positive catalyst, absence of media exposure, and a high probability bearish price action pattern, there is very little reason for $CRSP to sustain a higher price in the short-term.
As such, the downside risk for $CRSP is extremely huge. I will avoid entering a $CRSP position for the time being as I would like to wait for a re-test of the key levels before confirming a directional bias for a position. If we re-test the bullish channel's support-turn-resistant and H&S neckline but fail to break above either of them, we will likely be heading for the $84 to $110 level to complete the H&S pattern. Otherwise, if $CRSP manage to stay above them, I expect either a consolidation or a push for the resistance of the bullish channel.
This is not investment advice so please do your own due diligence!
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Unless we are able to break back above the bullish channel and the neckline, the H&S pattern will complete itself. The daily RSI may be in the oversold territory now, but considering the nature of our correcting market, $CRSP earnings miss, ARK not adding to their position, lack of short-term positive catalyst, absence of media exposure, and a high probability bearish price action pattern, there is very little reason for $CRSP to sustain a higher price in the short-term.
As such, the downside risk for $CRSP is extremely huge. I will avoid entering a $CRSP position for the time being as I would like to wait for a re-test of the key levels before confirming a directional bias for a position. If we re-test the bullish channel's support-turn-resistant and H&S neckline but fail to break above either of them, we will likely be heading for the $84 to $110 level to complete the H&S pattern. Otherwise, if $CRSP manage to stay above them, I expect either a consolidation or a push for the resistance of the bullish channel.
This is not investment advice so please do your own due diligence!
Support this idea with likes and share your thoughts below.
