HIMS:Potential HNS Pattern / HTF Double top Pattern
HIMS Analysis and Key LevelsGreetings Everyone,
After an impressive 400% rally from its October 2023 lows, HIMS is now showing potential signs of weakness.
Currently, the stock is trading below a key resistance/pivot zone (marked by the orange box) between $23.47 and $25.34. While this level was previously broken, the move was quickly faded, indicating bearish pressure.
Recent Volatility
Over the past two weeks, HIMS has exhibited increasing volatility, with sharp 10%+ sell-offs followed by quick recoveries. Trading volume has also surged during this period, with notable activity on both the bullish and bearish sides.
Key Levels to Watch
• Orange Zone ($23.47–$25.34): This remains the primary area to monitor for potential short entries. If the stock breaks above this range but quickly reverses, this would signal a possible shorting opportunity, with $16.54 (neckline) as the initial target.
• Support at $16.54: A breakdown below this level could indicate further downside.
Head-and-Shoulders Pattern in Formation?
There’s a possibility of a head-and-shoulders pattern forming, with the following structure:
• Left Shoulder (iii)
• Head = peak at (V)
• right shoulder = tight rope near (v)
If this pattern completes, it would favor a bearish outlook for the stock, increasing the probability of a downside move.
Bullish Case
For the bulls, the critical level to watch is $30. As long as the stock stays above this level and maintains support, the market sentiment would remain in favor of HIMS moving higher.
Summary
In the near term, the orange resistance zone will serve as a key battleground between bulls and bears. Keep an eye on price action and volume in this area for trade setups. A sustained move above $30 could signal further upside, while a breakdown below $22 would point to bearish continuation.
Best,
C Lemard
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