Time will tell as to whether an inverse H&S or Double Top Pattern is forming...
Before I go into the above analysis, you may ask ask why its not a "normal" H & S:
1. There is no head. Point 3 is not higher than Point 1.
2. Point 1 and 3 are almost the same, but point 1 (peak) is slightly higher than point 3.
Why Inverse H&S?
Typically, after a peak (like what we saw ~6.1cents), you normally won't expect an inverse Head and Shoulders, but the current charts are saying otherwise:
1. Point 4 is lower than Point 2. Therefore Point 2 is a shoulder and Point 4 is a Head.
2. Using Inverse H&S theory - The neckline are the peaks that we see at point 1 and point 3
3. Using FIBs Point 5 could be around 6.1 or 8.0?? What are your thoughts?
I also see the Double Top Pattern potentially forming:
1. Point 1 and 3 could be the double top
2. May be too early to see if we are in the clear, but we have passed the neckline at ~4.5
3. If it does drop below the neckline, possible 3.5 may be the trough??
As always, this is not financial advise, so please trade responsibly and Happy Trading!
Before I go into the above analysis, you may ask ask why its not a "normal" H & S:
1. There is no head. Point 3 is not higher than Point 1.
2. Point 1 and 3 are almost the same, but point 1 (peak) is slightly higher than point 3.
Why Inverse H&S?
Typically, after a peak (like what we saw ~6.1cents), you normally won't expect an inverse Head and Shoulders, but the current charts are saying otherwise:
1. Point 4 is lower than Point 2. Therefore Point 2 is a shoulder and Point 4 is a Head.
2. Using Inverse H&S theory - The neckline are the peaks that we see at point 1 and point 3
3. Using FIBs Point 5 could be around 6.1 or 8.0?? What are your thoughts?
I also see the Double Top Pattern potentially forming:
1. Point 1 and 3 could be the double top
2. May be too early to see if we are in the clear, but we have passed the neckline at ~4.5
3. If it does drop below the neckline, possible 3.5 may be the trough??
As always, this is not financial advise, so please trade responsibly and Happy Trading!