Formerly NE North Dakota, now NW MN | Only have a few ticks, but I'll just quick like say- this head and shoulders always looked a little a-typical to me. The price action seemed to attach some sort of significance to 12.30, sometimes using it as resistance, sometimes as support. So I always thought 12.30 was the "neckline" or the spot where the head is attached to the shoulders... i.e. one of the measuring points. For the objective, I used the high of 12.80ish (esignal has it at 12.79) for a 50 cent measurement, giving you an objective of 11.80, not to mention that a head and shoulders, if executed properly, can indicate a large sentiment change for a market. All that said, the second half of april when price was quite a bit higher than the 12.30 mark made the whole thing look a little weird. I never really knew what to think of it. Typically, I would want a head shoulders top to be a true top, not necessarily for the life of the contract, but for that particular move anyways. So, I gave the formation a fair amount of respect. Today's close over 12.30 though makes me doubt it'll execute.
I guess a person could say the neckline is actually at 12.50.... I don't know that that's the way i'd read it though. |
Fishguts
