This idea is an update to the head & shoulders initial trade idea.
As depicted, head and shoulder structure has still been in intact in the consolidation period where both longs and shorts stop-loss has been liquidated.
Today is critical which way we go.
A break out above the liquidation zone (102,800) will signal cup & handle target of $120,000. Those who took short from this zone may re-enter and push prices back down towards head & shoulder target below the neck line of $89,318.
Looking at a few indicators, I personally think a break out will fail. On the 1H time frame we have made 5 wave up to this previous sell off zone. RSI and Stochastic indicators are at overbought zone and cycle high level on the 1H. Finally volume is declining or weakening.
However on the Daily time frame Stochastic RSI is at about neutral level so not strongly confirmed.
These are just my thoughts I am sharing. Thank you.
Cheers to profitable trades
As depicted, head and shoulder structure has still been in intact in the consolidation period where both longs and shorts stop-loss has been liquidated.
Today is critical which way we go.
A break out above the liquidation zone (102,800) will signal cup & handle target of $120,000. Those who took short from this zone may re-enter and push prices back down towards head & shoulder target below the neck line of $89,318.
Looking at a few indicators, I personally think a break out will fail. On the 1H time frame we have made 5 wave up to this previous sell off zone. RSI and Stochastic indicators are at overbought zone and cycle high level on the 1H. Finally volume is declining or weakening.
However on the Daily time frame Stochastic RSI is at about neutral level so not strongly confirmed.
These are just my thoughts I am sharing. Thank you.
Cheers to profitable trades
Trade active
As noted at the time of this posting Stochastic RSI was at about neutral and hence the right shoulder of the pattern has been invalidated. Currently Stochastic RSI is over 92.77 (1/19/2025) on the daily time frame. There's now confidence that many bulls are trapped if momentum doesn't pick up to sustain RSI at these level. I however don't see the Head & Shoulders pattern target in the short term but possibly longer term target. Trade closed: target reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.