NOC has broken the neckline of the inverse H&S but has not reached long entry level for the cup and handle pattern.
Earnings 4-29.
This sector has been lagging. But everything changes (o:
Not a recommendation.
The inverted head and shoulder pattern is formed in the downtrend. It’s formed because of the change in how investors perceive the stock or the stock market. The stock is trading very low. This drives some investors to buy the stock. The stock prices rise to form the pattern’s left shoulder.
The downtrend drives the stock down. Investors buy the stocks because they anticipate that the trend will reverse. The stock price increases. The psychological or fundamental factors drive the stock prices. As a result, the head of the pattern is formed.
The stock corrects and reaches the same bottom level as the left shoulder. Since it’s at the support level, it rises back to the neckline or the resistance level. This forms the right shoulder. The right shoulder is approximately, but rarely exactly, the same height as the left shoulder.
In this pattern, a breakout above the neckline would hopefully result in an uptrend. The pattern is only valid with a break above the neckline. After a break of the neckline, this level becomes support.
Earnings 4-29.
This sector has been lagging. But everything changes (o:
Not a recommendation.
The inverted head and shoulder pattern is formed in the downtrend. It’s formed because of the change in how investors perceive the stock or the stock market. The stock is trading very low. This drives some investors to buy the stock. The stock prices rise to form the pattern’s left shoulder.
The downtrend drives the stock down. Investors buy the stocks because they anticipate that the trend will reverse. The stock price increases. The psychological or fundamental factors drive the stock prices. As a result, the head of the pattern is formed.
The stock corrects and reaches the same bottom level as the left shoulder. Since it’s at the support level, it rises back to the neckline or the resistance level. This forms the right shoulder. The right shoulder is approximately, but rarely exactly, the same height as the left shoulder.
In this pattern, a breakout above the neckline would hopefully result in an uptrend. The pattern is only valid with a break above the neckline. After a break of the neckline, this level becomes support.
Comment:
Beautiful cup and almost perfect with an inverse head and shoulders inside.