So in previous posts I have been saying that the thick white line that you see near the top is the "real" heads and shoulders neckline that was broken 3 weeks ago. It was an area of significance as the weekly, daily and hourly candles reacted to it. The white neckline is drawn based on daily candle bodies.
However in this post
.. I show a thick red line which is the neckline if you draw it based on the daily wicks. I make the argument that it is not correct.
However, clearly the market is reacting to this red neckline (see yellow highlight). The bulls are desperately trying to get the price to close above this line. I call this the LINE of DEATH, because if the daily closes below this red line, the bulls have no reason to believe any more, because there are no more necklines to break.
However in this post
.. I show a thick red line which is the neckline if you draw it based on the daily wicks. I make the argument that it is not correct.
However, clearly the market is reacting to this red neckline (see yellow highlight). The bulls are desperately trying to get the price to close above this line. I call this the LINE of DEATH, because if the daily closes below this red line, the bulls have no reason to believe any more, because there are no more necklines to break.