What a major bottom looks like: MOMO

In the last 6 - 7 years the $16 handle represented significance in both supply and demand.

Inverse head and shoulders patterns are common major bottoms. The neckline represents historical supply where price has difficulty getting above, because buyers aren't yet motivated enough to hold through those price levels. A catalyst is needed. An example of one that hasn't yet been resolved is the chart below:

Once price gets above this level (neckline) the path of least resistance changes, and sellers are no longer motivated to keep selling.

What we're seeing with MOMO is not an inverse H&S pattern, but the dynamic between buyers and sellers playing tug of war between a price level is no different. In the last week the path of least resistance is now in the buyers hands, as long as price stays above 16.

Comment:

The price action in this stock is really something. It's textbook structure in play. Look at how important the close is today.

We're getting above a gap fill here. S closing above this level is what I want to see:

Then if you look at the weekly chart you see more evidence of how important this level is:

We have a three day weekend ahead, which further cements how important it is (stocks that end strong on three day weekends indicate strength. Big money is willing to hold into it).

To me is a thing of beauty, and what I would call the definition of a major bottom.

Comment:

Retested 16s on today's massive shake out. That needs to hold. Can watch for a close above 18.25 on the weekly time frame for a reversal