Price is at a support/resistance level. A head and shoulders pattern is also formed. Look for sell signals in the sell zone. stoploss zone starts from the right shoulder and extends higher than the left shoulder. target#1 zone is limited by ab=cd measurement that is pretty common target method. target#2 is the standard height of the head target. If no reversals appear in the sell zone then no short positions should be opened. If price breaks the sell zone to the upside with a large expansion bar+follow through then buy positions should be considered. Good luck.
Commentaire:
Looks like we consolidate around the neckline. Consolidations are kind of indecisions in the market. The best decision would be to close the position if you have any. Breakout of a neckline should look like a breakout, not like a consolidation:)
