A H&S Pattern has formed in the XLK. What does it mean?
A head-and-shoulders pattern usually signals a potential trend reversal from bullish to bearish.
What to watch (triggers & confirmation)
1. Neckline break on volume — primary sell signal. Wait for a daily close below $283–285 with higher volume for confirmation.
2. Retest behavior — if price breaks and then returns to the neckline and is rejected (fails to reclaim it), that’s a strong continuation signal.
3. Momentum indicators — look for RSI falling below 50 and MACD turning bearish to add confidence.
4. 200-SMA reaction — a bounce there could be a good place to trim or hedge; a break below it strengthens the move toward the $265 measured target.
5. Market breadth / sentiment — if broad market or sector rotation accelerates away from tech, the pattern’s odds rise; if the market rallies, pattern may fail.
Do you agree? Any in contrary’s comments?
What to watch (triggers & confirmation)
1. Neckline break on volume — primary sell signal. Wait for a daily close below $283–285 with higher volume for confirmation.
2. Retest behavior — if price breaks and then returns to the neckline and is rejected (fails to reclaim it), that’s a strong continuation signal.
3. Momentum indicators — look for RSI falling below 50 and MACD turning bearish to add confidence.
4. 200-SMA reaction — a bounce there could be a good place to trim or hedge; a break below it strengthens the move toward the $265 measured target.
5. Market breadth / sentiment — if broad market or sector rotation accelerates away from tech, the pattern’s odds rise; if the market rallies, pattern may fail.
Do you agree? Any in contrary’s comments?
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免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。