On daily time frame..Earnings 2-9. A strong catalyst like an earnings beat may turn the stock bak up again. Nothing is written in stone and all patterns have the potential to fail, just like trendline analysis can fail and support and resistance zones can fail..
Some common guidelines for this pattern:
There must be an uptrend leading to the pattern (o: or how can it be a H&S top? There has to be something to reverse as this is a reversal pattern..
The neckline joins the 2 arm pits and is a source of support until it is broken..
The neckline usually will show valatility as the security fights to stay above it..
Consists of a right shoulder, a head and a left shoulder..
The 2 shoulders should be fairly close to the same price but are rarely exactly the same price..
Some calculate targets by drawing a line from the top of the head to the neckline, then subtract that from the neckline. (see white line) You can also draw a line then use the magnet to move the line to the NL and down..
Often the neckline slopes and is not a perfectly straight line. The neckline is subjective and you may not even see a H&S pattern, or feel the neckline should be higher or lower..
More often than not there will be pull back rallies up (maybe call it a pull up..lol) as the stock gasps for air..
To trade this pattern, many wait for a close below the NL and a confirmed downtrend
FISV was in a rectangle for a while, but broke up and out of the rectangle. Looks to be heading back down to the rectangle. Mid Rectangle could provide support which is 97.90..
The bottom of the rectangle will possibly provide support as well. When a strong support level is broken like 103.75 which is the upper trendline of the rectangle, I like to watch for a while and scope it out at each support level..if it breaks bottom trendline of rectangle, targets could go much lower..The top trendline of the rectangle is a level of support as well but looks like that was breeched by a candle tail..
Head and shoulder tops have a high failure rate in a bull market. I am not sure what type of market we are heading in to. If it remains a bull market, this may not go as low. Inverse head and shoulder bottoms have a better success rate in a bull market than H&S tops do. Opposite is often the case in a bear market..weekly and monthly candles are indeterminate..Has been a lot of selling and would think some buyer would come in soon. NV is very high...and short interest is not that high..
Not a recommendation..
Some common guidelines for this pattern:
There must be an uptrend leading to the pattern (o: or how can it be a H&S top? There has to be something to reverse as this is a reversal pattern..
The neckline joins the 2 arm pits and is a source of support until it is broken..
The neckline usually will show valatility as the security fights to stay above it..
Consists of a right shoulder, a head and a left shoulder..
The 2 shoulders should be fairly close to the same price but are rarely exactly the same price..
Some calculate targets by drawing a line from the top of the head to the neckline, then subtract that from the neckline. (see white line) You can also draw a line then use the magnet to move the line to the NL and down..
Often the neckline slopes and is not a perfectly straight line. The neckline is subjective and you may not even see a H&S pattern, or feel the neckline should be higher or lower..
More often than not there will be pull back rallies up (maybe call it a pull up..lol) as the stock gasps for air..
To trade this pattern, many wait for a close below the NL and a confirmed downtrend
FISV was in a rectangle for a while, but broke up and out of the rectangle. Looks to be heading back down to the rectangle. Mid Rectangle could provide support which is 97.90..
The bottom of the rectangle will possibly provide support as well. When a strong support level is broken like 103.75 which is the upper trendline of the rectangle, I like to watch for a while and scope it out at each support level..if it breaks bottom trendline of rectangle, targets could go much lower..The top trendline of the rectangle is a level of support as well but looks like that was breeched by a candle tail..
Head and shoulder tops have a high failure rate in a bull market. I am not sure what type of market we are heading in to. If it remains a bull market, this may not go as low. Inverse head and shoulder bottoms have a better success rate in a bull market than H&S tops do. Opposite is often the case in a bear market..weekly and monthly candles are indeterminate..Has been a lot of selling and would think some buyer would come in soon. NV is very high...and short interest is not that high..
Not a recommendation..
Comment:
Do not get me wrong, the market comes and goes like fashion...a pattern to watch..that is all..good luck!