CTM | Inverted Head and Shoulders PatternTechnical Analysis of CTM: Inverted Head and Shoulders Pattern
Pattern Overview:
Pattern Type: Inverted Head and Shoulders
Neckline: 3.80
Head Low: 1.10
Current Price: 4.40
Analysis:
CTM is forming a classic inverted head and shoulders pattern, a bullish reversal pattern that suggests a potential upward trend. The neckline, which is a key level of resistance, has been broken, indicating the pattern’s completion and a likely move upward.
Target Price:
Calculation: The target for an inverted head and shoulders pattern is calculated by adding the distance from the head to the neckline to the breakout point. Here, the distance from the head low (1.10) to the neckline (3.80) is 2.70. Adding this to the neckline gives a target price of approximately 6.50.
Trade Recommendation:
Long Position: Considering the breakout above the neckline and the bullish implications of the pattern, taking a long position is advised.
Entry Price: Enter around the current price of 4.40.
Stop Loss:
Level: Set a stop loss just below the neckline at 3.50 to protect against adverse price movements and ensure risk management.
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