Inverse Head and Shoulders RectangleI saw the Inverse H&S pattern, then looked back and saw the older rectangle pattern that SPOT is now back inside of. It made finding the neckline a bit easier.
SPOT broke free from the old rectangle pattern before latest fall to earth in a single thrusting green candle.
From looking at volume, it looks like smart money has invested in this at lower levels, and I am sure they invested in it a long time ago at really low levels as well (o: When I see a huge volume bar like the one that short SPOT out of the rectangle, makes me wonder if anyone other than smart money could have acheived that much volume on a security at this price? Sure I see the general trading public acheive this day trading penny stocks etc. I am just not sure we could have done that volume bar by ourselves? What do you think?
No recommendation.
Rectangles can be hard to bust out of but SPOT has done it before.
Rectangles are horizontal consolidation zones and this is a wide one. The bottom is support and the top represents resistance. Spot has passed Mid Rectangle (MR) which is 271.35. Some use this as a stop whichever way the rectangle breaks.
SPOT got past the bottom of the big green candle today, but closed right at the bottom of it. If I could go back in time, I would have used that candle as support, or a stop vs mid rectangle if I were using a trailing stop. It looks like it may be causing a little bit of resistance right now. I am thinking SPOT will eventually get past it. Lots depends on market conditions and things we have no control over.
