Few days ago, i just learn from a trader friend that this is not a Classical H&S because there shouldn't be anything on the left. Hence i call this as Pseudo H&S
Nevertheless, price wants to break the neckline but was rejected twice within a span of 3 trading days as can be seen from the wicked.
A close below 50ema would be an evening star rejection which would translate into a short for me.
P.S.: Always take note of potential false break out to test the slanting resistance, break the resistance to fill some gaps.
Comments
lmsmith
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Happy Holidays my friend! Love your post!
jangseohee
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Merry X'mas & Happy New Year 2015 to you and families, Smith! :-)
play4trade
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Check out the bigger neckline dating back to 5/2013... That's what we are going to test around 240ish(maybe 254 as overshoot), then down to 158 which is where the move began and left untested.
jangseohee
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Good observation, but i don think it is a neck line rather an uptrend line :-)
thanks for that, long term view is better.. u
play4trade
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play4trade
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jangseohee
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i will be vary of the resistance at 245 as it coincide with the downtrend resistance line as well
play4trade
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Like Ms. Smith pointed out, the uglier the H&S, the more likely it is to play out because it take more to notice it... I wonder where she learned that from ;-)
jangseohee
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a H&S is a H&S, as long as i can find LS, H & RS though might not be a perfect symmetrical one, we will ask Smith (Mr/Ms) when he is back in Jan 2015 :-)