Strong stock and has broken neckline before and recovered swiftly. CCI has not broken the neckline again as of yet.
When I see a possible second shoulder that fails to beat the prior high, I always take a second look if that 3rd leg has obviously turned down for the time being. Plus the retracements are often deeper than a price retracement in a strong uptrend. If this happens, maybe look for a neckline which is usually at the 1st shoulder retracement. A neckline is not always straight across and can slope.
A Head & Shoulders is not valid until price breaks the neckline with a confirmed downtrend. The neckline can be very strong support until broken. Many would wait for a retest of the neckline to prove that it is now resistance before shorting this pattern.
I measure the head to the neckline and project it downward from the neckline. Then I apply fib levels. I use the .382, the .618 and the .786 for targets 1. I also factor in a 100% fall. Targets 2 are valid only if targets 2 are passed. These are only ballpark guesstimates and levels of support are paramount.
No recommendation.
Short percent low at 1.03%.
Weekly Chart
When I see a possible second shoulder that fails to beat the prior high, I always take a second look if that 3rd leg has obviously turned down for the time being. Plus the retracements are often deeper than a price retracement in a strong uptrend. If this happens, maybe look for a neckline which is usually at the 1st shoulder retracement. A neckline is not always straight across and can slope.
A Head & Shoulders is not valid until price breaks the neckline with a confirmed downtrend. The neckline can be very strong support until broken. Many would wait for a retest of the neckline to prove that it is now resistance before shorting this pattern.
I measure the head to the neckline and project it downward from the neckline. Then I apply fib levels. I use the .382, the .618 and the .786 for targets 1. I also factor in a 100% fall. Targets 2 are valid only if targets 2 are passed. These are only ballpark guesstimates and levels of support are paramount.
No recommendation.
Short percent low at 1.03%.
Weekly Chart
Nota
I am not picking on CCI (o: I just saw this and it was almost perfect in appearance. The two shoulders are almost the same height and close to the same distance from the head.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.