An inverse head and shoulders on NKT that broke the neckline 48 hours ago. An acceleration to a new all time high took place the same day.
The next day showed much of the regain reverse, which is a worry as this engulfing candle could be a reversal sign.
However, watch price action over next couple of days to see how it shakes out or play it with a tight stop as the last decline of at the ATH was substantial (see yellow arrow - around 20%).
If this threat gets shaken off and the momentum continues then it could be a nice run up to more new highs.
The target for head and shoulders is typically the distance from the neckline to the head, so see the yellow measure of that which is added to itself to set the target.
Head and shoulders are just a pattern, they don't always work out, and i'm concerned about that engulfing red candle.
The next day showed much of the regain reverse, which is a worry as this engulfing candle could be a reversal sign.
However, watch price action over next couple of days to see how it shakes out or play it with a tight stop as the last decline of at the ATH was substantial (see yellow arrow - around 20%).
If this threat gets shaken off and the momentum continues then it could be a nice run up to more new highs.
The target for head and shoulders is typically the distance from the neckline to the head, so see the yellow measure of that which is added to itself to set the target.
Head and shoulders are just a pattern, they don't always work out, and i'm concerned about that engulfing red candle.