Trendline, Fibo 61.8%, HS
Price has not managed to break through resistance at $53.45 creating a head and shoulders pattern, now we should be looking to hit target of $52.20
It may well be tenuous, but is it an opportunity for a short?
So OK. I was wrong the first time about the break out on this market and it cost me 100 pips. I learned the "wait and see" lesson (again). And a lot of the other traders did predict this spike back up into trend before the bear run. However, what to watch for? So this newly formed head and shoulders gives us its neck line on old support/resistance which is...
Possible head and shoulder, i think that the third blu triangle will be completed, so for now the idea is going short till violet line. Reached this line, in my opinion MCDONALDS will follow the down trend (under blu line) with second target fix to orange rectangle (zone 113.36)
left shoulder, neckline and head have all formed, waiting for right shoulder which could trigger a possible reversal move.
We about to cure that dandruff with this head and shoulders baby.
With the weekly chart bouncing off the 50% Fibonacci level AND creating a strong bearish engulfing bar, further confirmation comes with an absolutely beautiful H&S pattern right here! However, I expect it to retrace all the way to the previous trendline that it recently broke off. Comment and let me know your thoughts on this! May the pips be with you!
This looks a lot like a head and shoulders pattern to me. If the stocks goes back to 22.28 ( the last support level), it's probably going to cross it and go down by a lot.
n the above chart, we notice from the left of the chart, that price was in a down trend. Soon, it establishes resistance level and drops lower only to rally back up to test the resistance. On successful test of the resistance, price drops back to make a lower low, forming the head and eventually makes the right shoulder. After this, price breaks the neckline...
The above chart, we notice from the left of the chart, that price was in a down trend. Soon, it establishes resistance level and drops lower only to rally back up to test the resistance. On successful test of the resistance, price drops back to make a lower low, forming the head and eventually makes the right shoulder. After this, price breaks the neckline...
fibonacci fan potential head and shoulder
Purists will tell you not to trade the H&S until the neckline breaks. I tend to prefer the outcome of looking for a nice reversal on the right shoulder, because you're already in a zone of resistance as proved by the left shoulder and head. If you do see a good reversal pattern at this level, you have a good chance of returning to the neckline as an initial target...