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Inverted Head and shoulders

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foschinni
Contributor
If you look carefully you'llsee that an inverted head and shoulders has formed. What does this mean in the light of the recent oil rally. We saw an example where Goldfields had formed a head & shoulders and 2 months after that the Gold price hit an all time high. Could a similar scenario happen with Oil?
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13 REPLIES 13
Not applicable
Inverted H/S work well in a bull market ... H/S work well in a bear market ... Make the call ??
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john_1
Super Contributor
H&S are reversal signals not continuation patterns..
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Not applicable
huh ?? they work better in a trending market
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manicks
Regular Contributor
Hi all, i bought SOL at 286, would now be good time to sell or should i hold can we expect continued upside due to higher oil price and weaker dollar perhaps resistance of 320 will now become the new support level. Sell or hold?
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john_1
Super Contributor
They are topping out patterns, signalling the end of a trend or start if inverted..
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foschinni
Contributor
Oil is approaching the $80 dollar mark. Hold for now. Does anyone know what Goldman Sach's view is on this recent rally. Or any institution that deals heavily with Oil futures?
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Not applicable
INverted Head ans Shoulders is a reversal sign yes, but only if the neckline is decently broken. this is about 60% of the time true. so dont be fooled by it 100% of the time ;-)
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Not applicable
Hold till target and re-asses if you want to sell. If not set a new target and trail your stops and ride it up.
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manicks
Regular Contributor
Thanks for advice guys.. i will hold to target and then re-assess.
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foschinni
Contributor
I sold out this morning after Oil slipped. I won't say that was a good move but at they say "NO ONE HAS EVER GONE BROKE TAKING PROFITS"
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Not applicable
is it correct to asume that in general sasol price will go up on 1.higher oil price 2. weak rand?
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manicks
Regular Contributor
In theory yes because both these factors will add to sasol's profits
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