You'll notice that many patterns mimick the index.
This has occured at most times where a confluence in price action in many other stocks preceeds longer term moves.
In the major downturn many stocks were in stage 5 of 5 Elliott counts as was the Index.
Ive noticed when there are a number of stocks displaying similar counts its a MONTE!
Well thats what the chart could be indicating...but a word to the wise.."Everyones jumps on gold in war-time scenario"..what im saying in english is that in my person opinion short-term the market could fall by a further 10% with up and coming end of year reports..Myself and a lot of traders i know in rl are thinking 2-3wks coming up could be a downturn..if this plays out then its hard to even imagine gold going down..cause in a panic everyone jumps to gold.Gold is a defensive stock when the market is negative,so it my pay dividends to re-evalutate the charts.And if your charts are suggesting gold going down-ward well quite could mean the bulls r coming out again..id say this may be august..id say the bears r coming out in july
H&S dont tend to be the most reliable patterns indicating a reversal. Studies have shown that on average if you were to enter a trade at the break of a neckline, after 10 days you would be sitting on a .7% loss.
Thanks people for your comments - much appreciated
I am very much of the same opinion. With the reporting season just around the corner (and I reckon it will be bad), then a jump to gold is on the cards. I will keep my eye on it just the same.
Interesting about the study - I hadn't seen this before
There seems to be non-confirmation from the Dow where the neckline appears to have been invalidated.
Considering the alternative scenario is a three-wave retracement that is complete already (edit: That ought to be "an alternative" and "or close to complete" - other scenarios are plausible and even this one could still continue for a bit), I'm just a bit cautious about going short at this stage.
H&S dont tend to be the most reliable patterns indicating a reversal. Studies have shown that on average if you were to enter a trade at the break of a neckline, after 10 days you would be sitting on a .7% loss.
Great articles thanks
Bulkowski states - H&S are 93% reliable, with 63% meeting predicted price target, who do you follow, open to interpreation from where you sit?
Another stock - BKY Berkley Resources
Listed as a spec buy of the week in a trading newsletter
You'll notice that many patterns mimick the index.
This has occured at most times where a confluence in price action in many other stocks preceeds longer term moves.
In the major downturn many stocks were in stage 5 of 5 Elliott counts as was the Index.
Ive noticed when there are a number of stocks displaying similar counts its a MONTE!