Cup and Handle Inverse Head and ShouldersDAL also formed an inverted H&S with neckline at 35.9..
Possible long term targets/T2 59.2 65.5..
Head and shoulder bottoms or Inverse H&S, can have more than one head and more than 2 shoulders, but rarely both. The bottoms can be rounded (Eve) or spikey (Adam) or a mixture of both.. This reversal pattern (reversal of a downtrend as there has to be a prior trend to reverse) is usually reliable although any pattern can fail..
The psychology of an inverse H&S is a supply vs demand scenario or a tug of war between the bulls and the bears. The bears take price down forming the left shoulder, but the bulls come to the rescue, taking price back up. The bears fight back and this go around, the bears take it even lower, forming the head. The bulls are not giving up yet and come back in force sending price up once again only to have the bears rain on the their party. And once again the bulls take price up. When price goes down to form the right shoulder, the bulls are ready and waiting to take price back up once again. By now the bears are worn out, they throw in the towel and go hibernate for a while and price is free to go higher after crossing the resistance of the neckline.
Not a recommendation
