GEN: A Violent V-Shape & The Inverse Head and ShouldersGEN: A Violent V-Shape & The Inverse Head and Shoulders
Gen Digital Inc. (GEN) is currently presenting a textbook reversal structure on the Daily timeframe.
After a period of correction, the price action has formed a clear Inverse Head and Shoulders , a pattern often associated with the end of a downtrend and the start of a new bullish phase.
Here is the breakdown of why this setup offers a high-value opportunity.
1. The "V-Shape" Recovery (The Hammer) The most striking feature of this chart is the formation of the "Head."
It is not a slow, rounded bottom. Instead, we see a violent V-Shape recovery.
This sharp rejection of lower prices indicates aggressive buying interest at that price.
Pro Tip : If you look at this price action on a higher timeframe (Monthly), this V-Shape translates into a massive Hammer Candlestick. This confirms a strong "Buy Zone" where institutions stepped in to defend the price.
2. The Activation Point We are currently completing the "Right Shoulder." The price is compressing just below the key resistance.
The Trigger: The Neckline is clearly defined at the $27.50 level.
We need to see a clean breakout and a daily close above this level to confirm the pattern is active.
3. The Execution Plan: LONG 🟢
Because the "Right Shoulder" is consolidating tight against the resistance, we can manage risk very efficiently. The price should not come back below the yellow lline if we see a powerful break.
Entry Zone : Upon a confirmed breakout above $27.50.
Stop Loss: Very tight. We can place it just below the recent consolidation of the Right Shoulder. This allows for a fantastic Risk/Reward ratio.
Take Profit: The projection of the Head's depth suggests a strong move upward, potentially targeting the $30.00+ region, but I'll take profits in a lower level.
Summary: This is a classic "bear trap." The violent dip (Head) trapped sellers, and the subsequent recovery (Right Shoulder) is squeezing them. If $27.50 breaks, the momentum should be strong.
⭐ Here is where the Pattern makes you money
The structure tells you exactly where to enter to minimize risk, providing a clear Stop Loss level and a mathematical target.
Remember: 80% of trading success isn't finding the pattern, it's executing the exit strategy properly.
👇 WANT THE EXACT NUMBERS?
I have broken down this complete analysis with the precise execution levels and exit strategy (Entry Price, Stop Loss, Profit Target).
🚀 Check my SIGNATURE to start trading seriously.
