We have:
1- An Accumalation ongoing for more than a week.
2- Recent drop rejected the weekly and daily major resistance.
3- RSI 8H showing divergence.
-- > IF buyers step in before we reach the previous low, we will have a H&S patern.
--> Entry should be on the BREAK of H&S neckline and previous resistrance, then bulls should step in.
--> Some gains should be secured on TP1 (Head extrapolation + EMA 200) but expecting a new bull trend to start.
Invalidation:
In case we break the previous low (Head)
Side note: H&S might have two shoulders so dont jump in the trade unless we broke both neckline AND resistance.
Happy trading
1- An Accumalation ongoing for more than a week.
2- Recent drop rejected the weekly and daily major resistance.
3- RSI 8H showing divergence.
-- > IF buyers step in before we reach the previous low, we will have a H&S patern.
--> Entry should be on the BREAK of H&S neckline and previous resistrance, then bulls should step in.
--> Some gains should be secured on TP1 (Head extrapolation + EMA 200) but expecting a new bull trend to start.
Invalidation:
In case we break the previous low (Head)
Side note: H&S might have two shoulders so dont jump in the trade unless we broke both neckline AND resistance.
Happy trading