When both the bullish patterns reversed after decent gains

25 Haz 2021

We are told that technical analysis and chart patterns are 99% accurate, but here we are going to see the 1% deviation from expectation. 1st, there is a reverse head and shoulder formation, at the breakout from the right shoulder, there is a volume spike along with a price rally. The profit target is 23 points ( from the head till the neckline). The rally stays only till 156, just 12 points up. From there, its a bear candle and the price rally down to all the way below the low of the 'inverse head'. On a two day swing position, this would have been a good recommendation, but the bear rally would have wiped out all profits. 2nd, immediately after the head and shoulder, it is followed by a rally which eventually rises, forming a 'Cup' and a downward trend as a small consolidation. Price breaks out at 145 and sustains only till 165 and then falls to the level of the initial breakout at 145. Thus, 145 can test for a good support level. The only worry is that though both of the bullish patterns have given swing gains, both of them failed to last and broke out of the bull rally. Over the last 4 days, the stock is in a side wards consolidation.