Dow - Head and Shoulder inside Head and Shoulder

FX:US30   Index of top 30 shares on Wall Street
If we dissect the right shoulder of the bigger head and shoulder seen on the daily chart via hourly chart, we see a head and shoulder breakout!

It has been breached on Friday and the prices are now trading slightly above the neckline seen around 17,590.

One may be compelled to think the bearish break has failed since prices are back above neckline...however, note that a larger head and shoulder on daily also showed a bearish break on Friday. Hence, caution is advised.


Failure to sustain above 17,590 followed by a break below 17,538.78 (23.6% of Feb low - Apr high) would add credence to a bearish break from a larger head and shoulder seen on Friday.

Thus, downside stands exposed in this case. Immediate support then is seen at around 17,150 levels.

The bearish view would take a backseat if prices see a daily close above 17,606 today.
Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out