This daily close only view makes that clearer. Don't forget that this is only a "potential" head-and-shoulders. Only a break below the neckline makes it a real one.
Thursday, June 24, 2010
Hunchback formation
Well, its really just a head-and-shoulders with a shrunken right hump, er, shoulder. Weak markets cannot form a proper right shoulder.
This daily close only view makes that clearer. Don't forget that this is only a "potential" head-and-shoulders. Only a break below the neckline makes it a real one.
This daily close only view makes that clearer. Don't forget that this is only a "potential" head-and-shoulders. Only a break below the neckline makes it a real one.
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4 comments:
Dear Mr. Kahn,
Although the H&S pattern needs to prove itself, are you concerned the 50-day MA is rolling over so sharply and that it will cross below the 200-day MA soon?
Scott W.
Dear Mr. Kahn
With Gold almost making those scary patterns, a rising wedge is evident on the daily chart...and almost a parabolic rise....
Can we assume that Gold will correct a lil giving that lil rally to the S&P....
Regards!
Scott, that is confirmation of the topping process. The more things that are bearish, the better the chances of the market falling.
Tryin,
Does gold wag the stocks market dog? I don't think that is the prevailing relationship today. But there is indeed a rising wedge in play.
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