First Fib - December 26, 2018 Lows to April 24, 2019 Highs Second Fib - April 24, 2019 Highs to May 29, 2919 Lows
We can see a very clear neckline @ approx. $174.94. Assuming the width of the shoulders are perfectly symmetrical, we could see a break of the neckline within 28 days, however, Powell's rate cut decision will either accelerate/nullify this process..
I usually see head and shoulders as bullish in an uptrend. The neckline will act as strong support upon a pull back. It's only when the neckline breaks (and fails a retest) that it's bearish, because that means strong support has just failed.
BigDGoesHard
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@ttrending, Good point. I was being forward looking when observing this, however that is what will get you screwed. Any thoughts on the current state of SOXX?
ttrending
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@BigDGoesHard, If you're sorta anxious and looking for an entry, I'd wait to see if it breaks the descending trend line and retests a support zone before entering. It looks like 61.8% and 50% retracement levels were confirmed as support, although the fib had to be finagled a bit to fit.
Personally, if using fibs, go where you know the institutions are. Since they have to buy into immense selling pressure to fill their large positions, they prefer AAPL and SPY. If patient enough, you'll get perfect 61.8% retracement entries and 200 WEEK moving average entries, with 200 week MA being my main preference (see BTC as well). The only problem is, this requires you to sit on your hands for most of the year which is probably one of the hardest things to do in trading imo.