Nasdaq Head & Shoulders starting to form?

1 Jun 2021

No doubt that this is premature but after todays good start and wobbly finish the NASDAQ has been a bit suspect the last few days, and this may be the start of a right shoulder beginning to form in a head and shoulders pattern.

If Nasdaq moves up to its previous high then this chart will look pretty silly, however another few days of stuttering starts and we could see a decline completing the right shoulder.

If the neckline is broken around the 13,100 - 13,140 level then that will be an area to go short. The dashed orange line shows this might be a support turning to resistance if broken.

If the 9 day SMA (white line) moves below the 21 day SMA (blue line) then this could be an additional indication of a short term move down.

I know i've gone very early on this one, but worth keeping an eye on.