Prop has technically already completed a right shoulder and currently has a decent sized green candle above the neckline. That shoulder is extremely small and disproportional to the rest of the inverse head and shoulder pattern, but I’ve seen even uglier looking versions of this pattern get validated so it is quite possible we could see it validate on the current breach above the neckline. What I’ve also seen many times is price action going back below the neckline 1-4 more time before the official breakout validation happens. Either way once the first breach happens it’s always wise to start keeping a close eye on an inv h&s patter. The breakout target for this one is pretty massive, around $42 or so, so I plan on trying to add some more propy to my holdings before the validation is confirmed. *not financial advice*
Comment:
I need to update and clarify one thin about this chart. This is the target we get when e look at propy’s inverse head and shoulder pattern on the logarithmic chart, the linear chart should give us a much lower breakout target than this and also usually tends to reach its breakout targets far sooner than the logarithmic chart hits its targets. Now that I realize I had log chart selected for this chart, I will be posting a linear chart version of thi chart too with a target that we should be able to reach far sooner than this $42 target.
Comment:
Propy has now dipped back below the rimline of the c&h pattern twice since the initial break above it. Plenty of chart patterns do this and often times another 1-3 more dips even before the actual breakout, so no cause for concern.
