Seeing the fear driven sellers some into this market has created what is known as a "head and shoulders" pattern.
This is a very successful reversal pattern in many other markets and although we haven't had the sample size of data due to the nature of this young market, it will be very interesting to see if we hold the test of the neck line once broken.
We know as technical analysis's that support should become resistance and as long as the right shoulder is not violated, we could see a confirmed reversal here.
Keep your eyes on it.
This is a very successful reversal pattern in many other markets and although we haven't had the sample size of data due to the nature of this young market, it will be very interesting to see if we hold the test of the neck line once broken.
We know as technical analysis's that support should become resistance and as long as the right shoulder is not violated, we could see a confirmed reversal here.
Keep your eyes on it.
Comment:
Neck Line violated and we are seeing some consolidation which represents further indecision. Will be waiting patiently to see what happens next