Price is below the neckline. Look in the rear view mirror as there is a gap that supported price on the last leg down. There is also a small gap not far beneath price and another gap around 83ish where price gapped down after the covid launch )o:.
There is also a Rising Wedge in this chart that still has not been broken and SPF has broken quite a few so far. This rising wedge lies right under 90 for a break of the bottom trendline. Rising wedges create a supply overhang at that level but are not valid unless the bottom trendline is broken.
Drawing the neckline can be most difficult for me. There are different ways to map out a H&S top and you may do this differently than I do.
Some necklines slope up or down, and sometimes there is not 3 distinct tops, or it is not a perfect Head with 2 Shoulders pattern. This one has more than 3, so I call it an ugly top. You may do this differently but I draw a line from the highest point to the neckline, then I apply fib levels. Ugly tops (also known as complex or complicated tops), H&S, triple tops and double tops all have a neckline. If the neckline slopes downward heading to the right, or last shoulder (drawn on chart), I project that line at the end of the last shoulder retracement. The neckline begins at the 1st shoulder retracement.
The neckline connects the 2 arm pits. Straight (or fairly straight) necklines seem to perform best with a distinct head and only 2 shoulders.
Shoulders should be close in height (rarely the exact same price) and about the same distance from the head.
A retest of the neckline often occurs after price falls beneath it. Then I feel fairly certain I drew the neckline correctly as price can not or has major issues breaking it. But price does sometimes and can stay above the neckline for a while, especially during a bull market.
Even after all that work, LOL, it is still just a guesstimate of where price may go. Price may fall 100% or that line I spent so much time projecting downward and applying fib levels, or it may not make it that far. It can also fall even further than 100%. I use the .382, .618 and the .786 for targets 1. Then the 1.272 and the 1.618 for targets 2, but sometimes it is obvious that another fib level may be important like the 1.113 or the .886.
Simply put a fib level on that projected line coming down from the neckline with the 0 at the top.
This pattern performs well in a bear market. The inverse head and shoulders or head and shoulders bottom, has been failing big time as of late, but it does best in a bull market.
SPG is is close to the 100% mark.
The smaller orange type are possible targets 2 if targets 1 are passed.
No recommendation.
A fall below the neckline is not always the last fandango. Any pattern can fail )o:
There is also a Rising Wedge in this chart that still has not been broken and SPF has broken quite a few so far. This rising wedge lies right under 90 for a break of the bottom trendline. Rising wedges create a supply overhang at that level but are not valid unless the bottom trendline is broken.
Drawing the neckline can be most difficult for me. There are different ways to map out a H&S top and you may do this differently than I do.
Some necklines slope up or down, and sometimes there is not 3 distinct tops, or it is not a perfect Head with 2 Shoulders pattern. This one has more than 3, so I call it an ugly top. You may do this differently but I draw a line from the highest point to the neckline, then I apply fib levels. Ugly tops (also known as complex or complicated tops), H&S, triple tops and double tops all have a neckline. If the neckline slopes downward heading to the right, or last shoulder (drawn on chart), I project that line at the end of the last shoulder retracement. The neckline begins at the 1st shoulder retracement.
The neckline connects the 2 arm pits. Straight (or fairly straight) necklines seem to perform best with a distinct head and only 2 shoulders.
Shoulders should be close in height (rarely the exact same price) and about the same distance from the head.
A retest of the neckline often occurs after price falls beneath it. Then I feel fairly certain I drew the neckline correctly as price can not or has major issues breaking it. But price does sometimes and can stay above the neckline for a while, especially during a bull market.
Even after all that work, LOL, it is still just a guesstimate of where price may go. Price may fall 100% or that line I spent so much time projecting downward and applying fib levels, or it may not make it that far. It can also fall even further than 100%. I use the .382, .618 and the .786 for targets 1. Then the 1.272 and the 1.618 for targets 2, but sometimes it is obvious that another fib level may be important like the 1.113 or the .886.
Simply put a fib level on that projected line coming down from the neckline with the 0 at the top.
This pattern performs well in a bear market. The inverse head and shoulders or head and shoulders bottom, has been failing big time as of late, but it does best in a bull market.
SPG is is close to the 100% mark.
The smaller orange type are possible targets 2 if targets 1 are passed.
No recommendation.
A fall below the neckline is not always the last fandango. Any pattern can fail )o:
Comment:
Correction: Draw a line from the top of the Head to the neckline then using the magnet, move that line to project down from the neckline for a 100% guesstimate of where price may go. Place a fib table on that line with the 0 resting on the neckline and the 1 on the bottom of that line you moved. The 1.113, 1.272 and the 1.618 should be below the 1 on the fib table.