ES Inverse Head And Shoulders
Trader Moe | Jun 29, 2016 10:17AM ET
ES is Likely to Complete an Inverse H&S Bottom on its Brexit Mini Crash
ES is likely to complete an inverse H&S bottom on its Brexit mini crash. It has continued melting up overnight but has formed an extended rising wedge in the process.
If ES should put a megaphone right shoulder on its inverse H&S, it could take out the Brexit low by a bit, morphing the existing inverse H&S into a larger one. But that’s not as likely as when a right shoulder megaphone forms on an upright head and shoulders.
ES still has a mandatory retrace target of at least 2100 to retrace the falling megaphone it formed on the Brexit mini crash.
Complex H&S vs Megaphone Top vs Sornette Melt-Up Set-Up
If ES reverses at 2100, or starts forming a top at 2080 that tags 2100ish, it’s likely putting a right shoulder on the potential complex head and shoulders on the 60-minute chart (purple scenario).
The pink scenario represents a megaphone top from which ES breaks out downwards.
The green scenario is a Sornette melt-up set-up with a target roughly 300 points higher.
The blue scenario is a continuation megaphone with a target roughly 150 points higher.
ES has Confirmed a 5-Year Rising Megaphone
ES has confirmed a 5-year rising megaphone on its daily and weekly charts. That would usually mean a significantly higher high to complete the formation.
That means any downwards breakout from the consolidation on the 60-minute chart would likely be stopped by the bottom of the 5-year rising megaphone (usually there would be a small break of the bottom).
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.