Todays movement of MCP has possibly formed the right shoulder for the inverted Head and Shoulders Pattern which is bullish.
Neckline is at the 2.35 area while the "shoulders" are nearly aligned at 1.86 for both Dec. 22, 2015 and today's candle.
I am weary of this particular iH&S because of the small consolidation slightly above the left shoulder. This would indicate that if the neckline is broken at 2.35, price will bounce once before continuing the breakout of the 2.55 resistance (small arrows in Possible Scenario). The other scenario is a straight break out through 2.55 with a new resistance of the 38.2% Fibonacci retracement at the 3.55 price area.
Caveat
No comments:
Post a Comment