In the graph above it's shown an example of a head and shoulders pattern, since we can appreciate two lateral peaks (shoulders) and a central peak (head) whose value is higher than the shoulders, an approximate profit is estimated with the height of the head of the pattern.
Example of a double top .this pattern has two peaks (A,C), at about the same level , the pattern is complete at the point B is broken on a closing basis. the minimum measuring target is the height of the top projected downward from the breakdown point.
head and shoulder occurs when a market trend is in a process of reversal .
Left shoulder: Price rise followed by a left price peak, followed by a decline.
Head: Price rise again forming a higher peak.
Right shoulder: A decline occurs once again, followed by a rise forming the right peak which is lower than the head.
D1 - Special Cycle completed, we have double waves down and price reached an extreme zone. We can look for buys with the breakout of the most recent trend line.
H4 - We have multiple cycles, all cycles are reaching towards the same magnet zone. Now we need to look for confirmations of bullish reversal in the form of false breaks, breaks above highs, trend line ...
The stock is bouncing between the support and the resistance of this long-term bullish parallel channel. Always pay attention to the bigger picture.
The informations and the strategies discussed are NOT recommendation to buy, sell or trade any securities. They are strictly for educational and illustrative purposes.
The stock has completed a short-term head and shoulders pattern. The price is consolidating and preparing for the next move. It has also broken a support level with high bearish volume and it's going to retest the 110.60 level. If/When the price is gonna swing, the minimum bullish target is around 118.
The informations and the strategies discussed are NOT ...
finding resistance around 118.11 and support throughout 02-15/ 05-03/ 06-13/ 06-23.
triangle pattern forming and waiting for confirmation with a break above the resistiance line.
target price can be based on difference between resistance line and the candlestick on 05-22.
I bought PEP due to the forecast of its earnigs are beter than the previous. It s finacial strength is good, valuation is neutral, momentum is good, and the risk is low. So, I think that is a good oportunity to go long. :)