Possible stop above neckline.
There is a level of support below the neckline at 275 and may be a more conservative short entry.
Short interest is low at less than 1% and this is a strong stock that I used to own. I am having issues about marking this short )o: so investigate. Earnings 5-18 with forecasts saying this could be an earnings beat. SNPS may not go down without a fight as I have been watching this one struggle for a while now.
The head and shoulders pattern is a predicting chart formation that usually indicates a reversal in the trend where the market makes a shift from bullish to bearish , or vice-versa. There will likely be price differences between the 2 shoulder heights and the pattern formation is rarely perfectly shaped in its appearance.
The “head” is formed when the price increases after the 1st shoulder retraces, creating a high peak above the level of the first shoulder formation. From this point, the price falls and creates the second shoulder, which is usually similar in appearance to the first shoulder.
The head and shoulders pattern does well in a bear market and not so great in a bull market. The Inverse head and shoulders pattern does best in a bull market as I have seen many Inverse H&S fail as of late.
The neckline is often placed at the end of the 1st shoulder. It is usually obvious where the neckline formed as there will often be a struggle at that level to stay above the support of the neckline.
In order to guesstimate how much prices will move after the neckline is broken, you can measure the distance, vertically, from the top of the head to the neckline. This would be a 100% move down from the neckline, but price can fall less or more than this number. Fib levels can be applied to the like with the 0 level placed at the neckline.
The pattern is not valid until there is a clean break of the neckline with a confirmed downtrend.
No recommendation.
Bad news contributed to the 2nd shoulder and it did not surpass the head.
There is a level of support below the neckline at 275 and may be a more conservative short entry.
Short interest is low at less than 1% and this is a strong stock that I used to own. I am having issues about marking this short )o: so investigate. Earnings 5-18 with forecasts saying this could be an earnings beat. SNPS may not go down without a fight as I have been watching this one struggle for a while now.
The head and shoulders pattern is a predicting chart formation that usually indicates a reversal in the trend where the market makes a shift from bullish to bearish , or vice-versa. There will likely be price differences between the 2 shoulder heights and the pattern formation is rarely perfectly shaped in its appearance.
The “head” is formed when the price increases after the 1st shoulder retraces, creating a high peak above the level of the first shoulder formation. From this point, the price falls and creates the second shoulder, which is usually similar in appearance to the first shoulder.
The head and shoulders pattern does well in a bear market and not so great in a bull market. The Inverse head and shoulders pattern does best in a bull market as I have seen many Inverse H&S fail as of late.
The neckline is often placed at the end of the 1st shoulder. It is usually obvious where the neckline formed as there will often be a struggle at that level to stay above the support of the neckline.
In order to guesstimate how much prices will move after the neckline is broken, you can measure the distance, vertically, from the top of the head to the neckline. This would be a 100% move down from the neckline, but price can fall less or more than this number. Fib levels can be applied to the like with the 0 level placed at the neckline.
The pattern is not valid until there is a clean break of the neckline with a confirmed downtrend.
No recommendation.
Bad news contributed to the 2nd shoulder and it did not surpass the head.
Comment:
5/7/22 Ouch Babe! Patterns do suck sometimes )o: