SHOP - Head & Shoulders but with strong volume on right shoulderVery apparent head and shoulders pattern but with unusually high volume for the right shoulder. Typically H&S have less volume on the right shoulder which demonstrates a lack of bullish enthusiasm. This makes me somewhat skeptical of a strong neck-line break and flush to the downside. One could make an case that what we have here is the fabled double head & shoulders pattern, which I read about in Technical Analysis of Stock Trends Vol 11 and have seen play out a few times. The pattern has two left shoulders and two right shoulders, basically the difference is that when the neckline breaks, price lazily breaks down.
Ok, I'm rambling.
Volume at price shows a cluster of volume starting above $300, which will take some effort to churn through. That said, each time we get to this ~$285 level we're met with strong volume, this leads me to believe that we will make additional attempts at $300, but, due to the volume traded overhead. I'm skeptical that we'll push much past $300.
So, for the next week or so, I'll maintain a neutral sentiment for swing traders as I believe the price may channel sideways. Whether we ultimately break down or break above $300 will depend on the overall market.
Feel free to leave comments, questions, observations or other in the comment section.
