🔍 Pattern Identified: Head and Shoulders (Bearish Reversal Pattern)
This is a classic Head and Shoulders pattern, which often signals a potential trend reversal from bullish to bearish.
Left Shoulder: Formed after a strong uptrend, followed by a small correction.
Head: A higher peak than the shoulders, indicating the last strong bullish push.
Right Shoulder: A lower high, indicating weakening bullish momentum.
Neckline: The support level connecting the lows between shoulders and the head. In this chart, it's slightly sloped upward.
💡 Current Price Action:
Price is hovering just around the neckline (~$3,300–3,310).
A break below the neckline with strong volume would confirm the pattern and likely trigger a move lower.
Volume has spiked during the right shoulder drop, suggesting sellers are already getting aggressive.
📉 Bearish Scenario (Most Probable if neckline breaks):
Breakdown from the neckline could lead to a drop toward the $3,160–3,180 zone initially.
Measured move target (height from head to neckline projected downward) could push price even lower, around $3,100–3,120.
📈 Bullish Rejection (Invalidation):
If price fails to break the neckline and instead rebounds, watch for resistance around the $3,360–3,400 zone (right shoulder high).
A break above the head (~$3,520) would completely invalidate this pattern and suggest a continuation of the uptrend.
🔄 Trading Strategy Suggestions:
Aggressive bears could short on a break and close below the neckline.
Conservative bears might wait for a retest of the neckline after the breakdown.
Bulls should wait for confirmation of support above the neckline or a higher high formation.
This is a classic Head and Shoulders pattern, which often signals a potential trend reversal from bullish to bearish.
Left Shoulder: Formed after a strong uptrend, followed by a small correction.
Head: A higher peak than the shoulders, indicating the last strong bullish push.
Right Shoulder: A lower high, indicating weakening bullish momentum.
Neckline: The support level connecting the lows between shoulders and the head. In this chart, it's slightly sloped upward.
💡 Current Price Action:
Price is hovering just around the neckline (~$3,300–3,310).
A break below the neckline with strong volume would confirm the pattern and likely trigger a move lower.
Volume has spiked during the right shoulder drop, suggesting sellers are already getting aggressive.
📉 Bearish Scenario (Most Probable if neckline breaks):
Breakdown from the neckline could lead to a drop toward the $3,160–3,180 zone initially.
Measured move target (height from head to neckline projected downward) could push price even lower, around $3,100–3,120.
📈 Bullish Rejection (Invalidation):
If price fails to break the neckline and instead rebounds, watch for resistance around the $3,360–3,400 zone (right shoulder high).
A break above the head (~$3,520) would completely invalidate this pattern and suggest a continuation of the uptrend.
🔄 Trading Strategy Suggestions:
Aggressive bears could short on a break and close below the neckline.
Conservative bears might wait for a retest of the neckline after the breakdown.
Bulls should wait for confirmation of support above the neckline or a higher high formation.
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.