Possible Inverted H&S Pattern

By

Edward M. Hamman

Senior Technical Analyst

WadaFox Trending TM

07/05/2020
09H40

Good day traders

The image below is what the market looked like for the past year, up to date. Now I will always point out possible patterns or signals because, well if we don't believe in possible patterns or signals then whats the point in trying?

I see a possible inverted head-and-shoulders pattern. This whole week is a bearish week, and I know with previous signals that next week will be a bullish week. So an inverted head-and-shoulders pattern would be perfect right here, as it is a huge bullish signal. Can catch a lot of pips in one trade movement.

The market is recovering from its lowest low since January 2017, and the dangerous thing to consider is that the month, week and day is in the sellers market because the whole year has been a downtrend so far. My question is 'when will this downtrend get to an end?'

I have charts like the one above since 2016, yes it isn't always necessary to go back that far but it is good to see where the market came from. I you are interested in those charts then subscribe at our Wadafox blog, inbox me @ edward.brunhamfx@gmail.com.

I will update the above chart today and tomorrow and we will see if this is a head-and-shoulders pattern that is forming.