NADEC has shown weakness and formed a top H&Ss
NADEC has just formed a top H&Ss though its neckline is slightly up-slanted which some chartists don't take for consideration. It still follows most of the formation principles such as the spike in volume corresponding head and the shoulders. To sum up my readings which could be wrong sometimes.
weaknesses:
1- parabolic move is broken down! see the arrow in chart
2- Within the major H&Ss formation, a minor "right angle triangle" is formed which in many cases is bearish considering the decreasing heights.
3- Corrective Wave III is on the run and it is usually very very aggressive.
strength:
1. Fundamentally, the company has improved its net-profit.
2. Corrective wave C is formed and either it goes on or revers but usually the latter.
I don't mean to bore you with my analysis, but if you want to short it, wait till the yellow-highlighted support as seen in chart is broken down with some volume then you get the confirmation.
weaknesses:
1- parabolic move is broken down! see the arrow in chart
2- Within the major H&Ss formation, a minor "right angle triangle" is formed which in many cases is bearish considering the decreasing heights.
3- Corrective Wave III is on the run and it is usually very very aggressive.
strength:
1. Fundamentally, the company has improved its net-profit.
2. Corrective wave C is formed and either it goes on or revers but usually the latter.
I don't mean to bore you with my analysis, but if you want to short it, wait till the yellow-highlighted support as seen in chart is broken down with some volume then you get the confirmation.
Trade closed: target reached:
reached and revered at the same point