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Online Share Trading

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SHP - Inverted Head and Shoulders

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HungryPunter
Regular Contributor
I think the bubbles in my shampoo might be getting to me. If this one breaks what I believe to be a neckline it jumps a lot. Who else can see this, or am I allone on this one?
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6 REPLIES 6
Not applicable
As far as I know(I stand to be corrected), an inverse head and shoulders signals the reversal of a downward trend.SHP is in an upward trend so I dont think it tells you very much.
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Not applicable
Inverted Head and shoulders in uptrends do present themselves periodically. Gold actually broke from a long term pattern around Sep last year and has just broken above another shorter term one around 9 April. The pattern in SHP is not an obvious inverted H&S though and I probably wouldn't term it such. However, based on trend analysis this would still be an exciting share to watch. Your neckline that you've drawn is probably a key resistance level, so whether you term it an inverse H&S or a simple break of resitance, it doesn't make much of a difference. Just remember that patterns and resistance breaches do sometimes fail so you need to have an exit strategy.
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Ninja
Super Contributor
Unfortunately the chart pattern is not supported by international indices right now and the short term uptrend support is under attack as we speak. In addition the RSI is pointing to more downside as is the Stochastic. The chart pattern needs to be supported by your indicators to put the odds in your favour.....you may still get a neckline break in the weeks ahead but I wouldn't hold my breath, pattern is not as clear as it could be either. My advice would be to wait for a close above R81 if it gets there.
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SKALA
Super Contributor
I think it might follow the PIK pattern; so going down past 72 level.
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Galuc
Super Contributor
When the chairman buys R7 bar worth of futures it definitely encourages me.
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jannie2
Contributor
looking at sens - the directors sold sold R 20 mil of shares. around the 15 th
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