lauralea

Inverse Head and Shoulders

Long
NASDAQ:ESLT   Elbit Systems Ltd
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2
Long entry level is the neckline where resistance is located. Necklines are not always straight trendlines but you could enter at 128.85ish and clear the first candles upper wick. It is acceptable to some to enter when price breaks the 2nd reaction high. Looking at volume is important as with a break out through the neckline, an expansion of volume is imperative to this pattern. It is also good to see increasing volume during the travel up from the right shoulder, andI see increasing volume . Take a look though (o:
Head is at 110.69 Left shoulder is at 118.25 Right shoulder at 116.60

Tons of volume when ESLT hit 113ish...gappy chart..appears to be struggling down there.

The inverse head and shoulders pattern occurs during a downtrend and marks its end. The chart pattern shows three lows, with two retracements in between. The pattern completes and provides a potential buy point when the price rallies above the neckline or second retracement high.
Price drops to a point where the market cannot support lower prices and the price begins rising again. Again, market resistance forces the price back down, and the price drops one last time. If the market can't support a lower price, it doesn't reach the prior low. This causes a higher low before prices rise again. This movement creates three troughs, or low points, called the left shoulder, head, and right shoulder.
It is important to establish the existence of a prior downtrend for this to be a reversal pattern. Without a prior downtrend to reverse, there cannot be a Head and Shoulders Bottom formation.

An inverse head and shoulders pattern occurs in all markets, on all time frames, and is associated with the reversal of a downward trend.
Stops are usually placed under the right shoulder. Just place it in a sneaky place if you enter this trade so the grinch doesn't steal your trade (o:


Not a recommendation, Just an observation





Elbit Systems Ltd . develops and supplies a range of airborne, land, and naval systems and products for defense, homeland security, and commercial aviation applications. The company offers military aircraft and helicopter systems; commercial aviation systems and aero structures; unmanned aircraft systems and unmanned surface vessels; electro-optic and countermeasures systems; land vehicle systems; munitions; command, control, communications, computer, intelligence, surveillance, and reconnaissance and cyber systems; electronic warfare and signal intelligence systems; and commercial cyber protection products. It also provides medical diagnostic equipment, automotive night vision enhancement equipment, and smart glasses for sports applications; and super capacitor energy sources and fuel cells for transportation applications, as well as a range of support services, including training and simulation systems. The company markets its systems and products as a prime contractor or subcontractor to various governments and companies. It has operations in Israel, North America, Europe, the Asia-Pacific, Latin America, and internationally. Elbit Systems Ltd . was founded in 1966 and is based in Haifa, Isr