We have just broken below the neckline of a head & shoulders pattern on the weekly chart. RSI is already oversold but I do not see much support before the 50% and 61.8% fib retracement of the 2015 lows to the recent weekly highs where I would look for an buy entry. Also in that area there is an open gap to fill at $25.49. However, traditional head & shoulder pattern targets would be even around $23.38 which nicely lines up with major weekly support at $23.72 for even a greater buying opportunity.
Comment:
still $1.50 left to the downside in this powerful downward move initiated by that H&S pattern
Comment:
What a sell-off. This shows the power of H&S patterns. We arrived at the next weekly support level at 23.72 and if we get to 23.38 we should see profit taking from traders who trade the H&S pattern the conventional way.
Comment:
So 23.38 was hit and the H&S shorters probably took profit here.
At the moment we have:
-weekly RSI divergence
-price at weekly support level
-H&S completed
At the moment we have:
-weekly RSI divergence
-price at weekly support level
-H&S completed