It certainly looks as though hbar is already validating the breakout from this inverse head and shoulders pattern…however with price action this far above the 50 and 200mas at the time of its golden cross, there’s always a likelihood it may dump back down to the MAs at the time of the cross or shortly thereafter, even dipping back below the neckline temporarily to shake some weak hands that long in this zone…of course it could validate and just continue up to the target from here as well…if it does try to dip back down to the MAs to test them for support and even dip back below the neckline, probability favors that it will likely break above the neckline once again before too long an d then validate at that point if it doesn’t already validate after this first break of the neckline. Of course if we see price flip the 200ma back to solid resistance, then probability will favor this pattern becoming a fakeout…but until then probability favors it validating. *not financial advice*
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Target is .126
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Price action has dipped back below the neckline. A common occurrence after the initial break of the neckline. As of now I still anticipate that it will break back above the neckline eventually.
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Its current support is right on the 1 day 50ma
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Hbar with a common tactic here where price breaks above the neckline for a bit before dipping back below to form the real right shoulder.
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Been back under the neckline for awhile now but as long as it doesn’t do below the head this inv h&s pattern is technically still in play.
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Took the scenic route on this pattern for sure with a heavily extended right shoulder….still ended up hitting the original target . Most people would quit paying attention after the right shoulder grows wider than the head but I have found often these mongoloid asymmetrical versions of head and shoulders patterns still tend to hit their breakout targets with good frequency.
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The reason this ones right shoulder grew so wide is because it first got above the neckline while we were still in the sideways market cycle imo.
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alex_chaddr
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Do think we'll continue to dip more? Or hit 12 cents first then dump major
DrDovetail
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@alex_chaddr, most inv h&s patterns dont validate the breakout on the first time price gets above the neckline. They usually dip back below the neckline and dont trigger until the 2nd or third time price breaks above the neckline. However there are plenty of times where this pattern does validate its breakout on the first time above the neckline so it’s hard to say what hbar will do here. The fact that price is so far above the golden cross actually increases the odds of price going back to retest the 50 and 200mas as support in the next few days but it could still pump to the inv h&s target first before doing so.