lauralea

Head and Shoulders/Flags Versus Pennants

NYSE:U   Unity Software Inc
U has fallen from an ugly top and bear flags/ pennants have formed on the way down. Unity fell from a prior head and shoulders and recovered . That was then.
The all time low was recently made which is slightly lower than the IPO price of 65.11. I am often leery of stocks this close to the point of having no support. IPOs can be great until price goes below the low, as new support will need to be formed.

U has reached the target of the last Bear Pennant as demonstrated using the pole and projecting it downward. A pennant usually has both trendlines sloping up and converging and looks similar to a rising wedge . Flags and pennants are known as continuation patterns. They are typically seen right after a large, quick move to the upside or the downside. If the move is slow and ranging in areas, it is probably not a Flag or a Pennant . Bullish flags are characterized by lower tops and lower bottoms, with the pattern slanting against the trend. But unlike wedges , their trendlines run parallel. Bearish flags are comprised of higher tops and higher bottoms. "Bear" flags also have a tendency to slope against the trend. Pennants are typically smaller in size and formation.

U has broken the neckline a while back of the H&S pattern. A fall of 100% is marked with a white dashed line but this is just a guesstimate. This pattern can fall less or more than 100%.
Finding the neckline can sometimes be tricky and sometimes they are easy to see. Before a break down through the neckline, there may be evidence of a struggle to stay above the support of the neckline. After price falls through it, if it does as any pattern can fail, the neckline becomes resistance and you may see a resistance struggle at this level. This pattern has a higher failure rate in a bull market.

If U falls below it's most recent low of 64.14, I would consider shorting this.

No recommendation.

It is hard to learn from your mistakes if you do not know what you are doing wrong )o:
Comment: Earnings 5-10 AMC
Comment: The smaller orange type are targets 2 if this goes below targets 1 which is the larger orange type
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