Reverse head and shoulders

[sponono]

Seems a reverse head and shoulders is brewing (3 year chart). A new 52 weeks high might send us to 410+(410-310)=500. This wont happen tomorrow or next week or next month by the way. Russ what do you see?

[Russ]

I can see that technically 10/08/11 was the perfect time to buy-too late now!It seems to have just broken out of the little channel that has formed over the last month.This probably also brings it back above the support line if you join the low points from 26/8/11.Also broken its down trend since 2/3/12.So, yes, I think it is looking bullish.Getting a bit overbought on daily chart but on weekly is oversold,so I think good prospect medium term.I would add that the break upwards is still intraday and would wait to see how it closes today.

[Russ]

I would say the resistance from that support line (from 26/8/11)is at about 37400 today (and rising each day)so a decent close above this is needed today.

[sponono]

the daily RSI has broken on the upside. A close above R380 would probably indicate an entry point. Only problem is the overall market seems quite scary: the VIX is doing a reverse head and should and the R/$ does not seem to be continuing to strengthen with its Bollinger Bands indicating a potential weakness looming. I would sit in cash at the moment.

[Rams]

Sponono,I dont agree with the reverse head and shoulder pattern on the 3 year chart because its not classically formed from an Elliot Wave analytic view...the left and right shoulders and neckline lines are not symmetrical...the right is too high(337/367 on left and 360 and 411 on right). Also,the pattern is not supported by good volume(decreasing from 12 march 2012). I agree with Russ, the pattern was there and played out at the recent high of 411. I agree with you though that SASOL will reach 500-600 but not based on the rH&S pattern.