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Head and Shoulders

EURGBP: Top-Down Analysis & Bullish OutlookEURGBP successfully adhered to a previously broken significant horizontal resistance level. Following its bullish breakout, a highlighted blue region turned into a support zone. Testing the broken structure, the market established an inverted head and shoulders pattern on a 30-minute timeframe, signaling a short-term bullish indication. It is anticipated that there will be a pullback, reaching a minimum of 0.8392 and potentially extending to 0.8410.
Long
by linofx1
Head and Shoulder Pattern Breakout in BANKNIFTYHead & Shoulder (H&S) pattern in the Bank Nifty Index on a daily timeframe. The H&S pattern is a reversal chart pattern indicating a potential bearish trend after an uptrend. Here's the detailed explanation: 1. Key Components of the Pattern: Left Shoulder: The first peak, formed after an uptrend, followed by a decline to the neckline (support). Head: The highest peak, formed after the left shoulder, followed by a decline back to the neckline. Right Shoulder: A peak lower than the head, formed after the neckline is tested again, signaling weakening upward momentum. 2. Neckline: The neckline acts as a support level that connects the lows between the left shoulder, head, and right shoulder. In this chart, the neckline is marked as a critical support level. 3. Entry and Targets: Entry Point: A short position is triggered once the price breaks below the neckline with strong bearish confirmation. Projected Targets: Target 1: 48,050 Target 2: 46,550 Final Target: 45,000 These targets are derived by projecting the height of the head from the neckline downward. 4. Stop Loss: The Stop Loss is placed above the recent high near 51,050, to minimize risk if the price reverses upward. Conclusion: The Bank Nifty chart demonstrates a classic Head & Shoulder pattern, indicating potential downside targets with well-defined entry, stop loss, and profit-taking levels. This pattern suggests caution for bullish traders and an opportunity for bearish traders if confirmed.
NSE:BANKNIFTYShort
by TradZoo
Bitcoin is at a critical point - Consider this very seriously!!Hey family! Welcome to the wild world of cryptocurrencies, where the market can swing from one extreme to another in the blink of an eye. Crypto trading is known for its high volatility, which means prices can go up or down dramatically in short periods. Right now, many traders are buzzing with excitement, expecting Bitcoin to go on a bullish run. However, in such a dynamic market, it's always wise to consider the other side of the coin. Given the current sentiment, there's a good chance we might see some bearish moves too. So, while we're all hoping for the best, let's keep our eyes open for potential dips and prepare accordingly. Let's dive into today's analysis with that in mind! Overview This report provides a detailed technical analysis of Bitcoin (BTC) against Tether (USDT), focusing on the Ichimoku Cloud and chart pattern formation in combination. Head and Shoulders Pattern Pattern Description: The chart shows a Head and Shoulders pattern, which is a bearish reversal pattern following an uptrend. It consists of three peaks: the left shoulder, the head, and the right shoulder. Identification on Chart: Left Shoulder : Formed around mid-November. Head : Formed in Mid December, peaking at approximately $108,000+. Right Shoulder: Currently forming as of Jan 10, 2025, with a peak slightly lower than the head formed on Jan 7th. Neckline : The neckline is drawn at the price level where the dips occur between these peaks and it is a wise choice to take the price zone as a whole in to consideration instead of just a specific price level. By this the neckline zone can be taken as between $89,800 & $92,400. A breakout below this level suggests a strong trend reversal. Ichimoku Cloud Analysis The Ichimoku Cloud, or Ichimoku Kinko Hyo, provides insights into support/resistance, momentum, and trend direction . Here's the breakdown: Kumo (Cloud): The cloud is formed by two lines, Senkou Span A and Senkou Span B, projected 26 periods into the future. Current Cloud: The price has recently broken below from the upper cloud support, which was acting as support, and heading to the bottom of the cloud. This breakout below the cloud is a bearish signal indicating potential further downside. Future Cloud : The future cloud (shaded area ahead) is sloping upwards, which traditionally would suggest bullish momentum, but given the current price action below the cloud and the reddish color it created, it might imply a false bullish signal or a potential resistance if the price attempts to recover. Tenkan-sen (Conversion Line) and Kijun-sen (Base Line): Tenkan-sen : This line (blue) is the average of the highest high and lowest low over the last 9 periods. It's currently below the Kijun-sen, reinforcing the bearish sentiment. Kijun-sen: This line (red) is the average of the highest high and lowest low over the last 26 periods. The price is below both lines, indicating bearish momentum. Chikou Span (Lagging Span) : This line shows the current price action shifted back 26 periods, providing a historical perspective. Position: The Chikou Span is below the price action from 26 periods ago, which is another bearish signal. Kijun-sen Cross : The Tenkan-sen crossing below the Kijun-sen while both are below the cloud strengthens the bearish outlook. Key Price Levels Breakout Level: $89,800 (Neckline) Current Price: Around $92,750 Resistance: Cloud top around $95,000 - $97,000 - $100,000. Support : Below the neckline, potential support around $85,000 to $82,000. Volume Analysis Volume: While high/average volume during the formation of the head might suggests strong participation, the volume during the right shoulder formation is lower, possibly indicating reduced buying interest. Last Note : As a confluence the Trend Strength Index is also showing a declining movement both the weekly and daily charts even though it it at floor levels on the 4 Hr chart. This basically tells us that we might see some dip movements in the following days if volume continue dumping like it does in the past 3 1D candles. Conclusion Using the Ichimoku Cloud, we observe several bearish signals for Bitcoin: The price is below the cloud, indicating bearish momentum. The Tenkan-sen is below the Kijun-sen, and both are below the cloud, reinforcing the bearish trend. The Chikou Span is below past price action, further confirming the bearish scenario. Despite the future cloud showing an upward slope, the current price action suggests a continuation of the downtrend, with the Head and Shoulders pattern serving as a strong bearish indicator. Traders should consider this analysis in light of overall market conditions, keeping in mind that while the Ichimoku provides comprehensive insights, market sentiment and external factors also play crucial roles. Watch for any potential retest of the neckline or cloud for further confirmation of the trend. But instead of the bearish breakout to the downward, if Bitcoin can rebound from the current price level, it is going to be yet another strong bullish move for a formation of a megaphone which is unlikely though. For risk management, always consider using stop-loss orders, especially in volatile markets like cryptocurrency. Stay Tuned for further updates. With Regards. CTE.
Long
by cryptotalk_et
2
BTC could be about to crashBitcoin bulls are under significant pressure today as the price tests the lower boundary of a 50-day range. Since November 21st, Bitcoin has formed a major head-and-shoulders pattern, indicating that a break below 91,281 could result in an 18% decline, bringing the price down to 74.16k. While such a drop would be significant, it seems unlikely given the broader bullish trend and strong fundamentals, though it cannot be ruled out entirely. From a trading perspective, here are a few strategies to consider: 1. Short on a Break: Short Bitcoin if it breaks below 91.28k, targeting levels around 86k or 84k instead of 74k, as buyers may step in at those lower levels. 2. Buy the Dip: Consider buying near 86k, as it serves as a support level, and traders often capitalize on sharp dips of this magnitude. 3. Buy Now with Caution: Enter a long position at the current support level, though caution is warranted as the market may attempt to run stops below 91.28k. Traders should remain vigilant, as the price action around 91.28k will likely dictate the next significant move. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
THINKMARKETS:BTCUSDShort
by ThinkMarkets
Trouble Ahead for BTC/USD?Since early December 2024, BTC/USD (Bitcoin versus the US dollar) has traded tentatively around US$100,000. What is interesting from a technical perspective is the formation of a potential (complex) head and shoulders top pattern (left shoulders at US$99,806 and US$104.047; head at US$108.396; possible right shoulders at US$99,887 and US$102.750). Were price action to engulf the pattern’s neckline (taken from the low of US$90,731), this could send the major Crypto pairing as far south as support from US$71,922.
FPMARKETS:BTCUSDShort
by FPMarkets
BTC - Head & Shoulder forming, 74k to 77k price projectionAfter hitting all time highs, BTC has been bouncing in a range, trying to break free and forming possibly a head and shoulder pattern. If BTC breaks through 91,400 and head and shoulder pattern plays out, on the basis of the measured distance between head and neckline, BTC is likely to test 77k or 74k. BTC could test 77k because: - the measured distance between head and neckline in % terms will take BTC to 77k - if we use trend based fib tool to project BTC price, 77k is a fib level of 50% BTC could test 74k because: - the measured distance between head and neckline in $ terms will take BTC to 74k - there is strong support zone around 74k region Remember technicals are all probabilities, price negate head and shoulder pattern to test all time highs.
by I_M_Shoaib
BTC SHORT - Intermediate reversal TradeBTC has formed a shooting star close on the monthly chart, and also has a head and shoulders showing up on many time frames (1D, 2D,etc.) It is having a hard time breaking into the 99K + resistance area. I have an adaptive short trade here. Blue Box entry, blue box - 96,500 - 99K Stop loss just above 100K Red Box Entry, if price goes into the red box 99k-104,500K - stop loss above ATH price of 108,321ish Take Profit 1: 85K Take Profit 2: 81.3K Take profit 3: 78K Take Profit 4: 72K Take Profit 5: 66K I have a lot of take profit areas up because it is hard to tell how big of a correction BTC will have overall if it does have a correction. I do see the potential all the way down to 52K, though. Thanks and trade safe!
BITSTAMP:BTCUSDShort
by LoneWolf1425
SUI Intermediate Short TradeHowdy everyone! SUI has been on a tear! Well, I think that BTC is showing a nice sized reversal before the final parabolic phase of this bull market. I also think that SUI has hit an area of interest, and it is way overbought. I think that shorting as close to the current 4.236 of this fib sequence at $5.26 is ideal. Entry - As close to $5.26 as possible. Once we get further confirmations, there will be multiple areas that you can enter a short. I am attempting to catch the reversal here. My take profits are based on catching the reversal. Take Profit = TP TP 1: 3.26-3.72 TP 2: 2.85-3.02 TP 3: 1.98-2.50 TP 4: 1.24-1.65 Stop Loss: Above current ATH of $5.36 This depends on how big of a correction that BTC gets. We have a monthly shooting star on BTC, and BTC is showing head and shoulders on multiple timeframes (1D, 2D, etc.) Thank you and please trade safely!
COINBASE:SUIUSDShort
by LoneWolf1425