SMH?
Yes, it does look like a massive H&S is in progress -- getting ready to finish the right shoulder.
Yep, you can have an upright H&S during a down-trend.
But, in theory at least, you should not be able to have an H&S after a bottom.
Because ... <drum roll please>
An H&S on a downtrend is a CONTINUATION PATTERN -- so, if it's valid, it means you probably don't have a bottom at all.
):
-- or --
(:
-- depending on one's perspective.
Bulkowski doesn't cover it, (the putz). Murphy mentions it, but doesn't say how to measure it. I would assume the measurements would be the same as if it were at a top.
Getting back to your pattern... Even if the H&S doesn't pan out, you've still got a sharp decline from just over 950 to just under 875, followed by a bear flag, which currently tops at about 915. So, I would figure on a drop of about 70 points from wherever that bear flag breaks down. |
