SPX/SPY - 7 months HEAD & SHOULDERS TOP
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Since 2014, my markets approach is to spot trading
opportunities based solely on the development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
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Hello Traders ✌
In the end we got it completed.
After 7 months of consolidation, prices are breaching the neckline of an unbalanced Head & Shoulders Top. A poor formed right shoulder of an H&S Top is usually a sign of weakness.
The pattern has developed at the all-time high and just above the 200 days EMA, both things we are always glad to see when evaluating a reversal pattern like this.
If prices go towards the target, keep in mind that we will have to deal with the 400-403 gap area.
For Buy Hold-only investors just be patient, if this scenario realizes you could get great buy opportunities.
🔎🔎🔎 ALWAYS REMEBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
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Since 2014, my markets approach is to spot trading
opportunities based solely on the development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
═════════════════════════════════
Hello Traders ✌
In the end we got it completed.
After 7 months of consolidation, prices are breaching the neckline of an unbalanced Head & Shoulders Top. A poor formed right shoulder of an H&S Top is usually a sign of weakness.
The pattern has developed at the all-time high and just above the 200 days EMA, both things we are always glad to see when evaluating a reversal pattern like this.
If prices go towards the target, keep in mind that we will have to deal with the 400-403 gap area.
For Buy Hold-only investors just be patient, if this scenario realizes you could get great buy opportunities.
- Pattern Class: 🌕🌕🌕🌑🌑
- Target area: 385.00
- Breakout area below: 417.00
🔎🔎🔎 ALWAYS REMEBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
═════════════════════════════════
⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
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When I posted this chart was during thursday mid-session since I wanted to alert you in advance but the only price that matters to me is the closing one.
During the thursday session I got some questions about which kind of Gap could it be (Common, Break-Away, Continuation or Exhaustion) but actually we had no Gap yet and, by the end of the session, prices went back just above the neckline filling the opening Gap. On friday we had another bullish session pushing prices inside the pattern.
Nonetheless prices are still below the 200 dasy EMA and below the first trendline we can draw as resistance for the possible downtrend. Knowing that a quick recover above the right shoulder would completely change the scenario, for the moment I keep a bearish bias and label thursday session like an "Out of Line Movement". I think next week will be crucial for this pattern destiny.