Our previous idea indicated a flag break which consequently failed but the chart has now developed into an inverted head and shoulders pattern which targets R204 zone initially.
Ideally the bulls want to hold onto the up trending 20ema on any pullbacks.
The inverted head and shoulders is a bullish indicator in the stock market. It is similar to the standard head and shoulders pattern but inverted. The pattern is identified when the price action of a security meets the following characteristics: the price falls to a trough and then rises; the price falls below the former trough and then rises again; finally, the price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs. The pattern completes when the price drops for the third time and then rises to break the neckline, confirming that bull has finally taken over.
Ideally the bulls want to hold onto the up trending 20ema on any pullbacks.
The inverted head and shoulders is a bullish indicator in the stock market. It is similar to the standard head and shoulders pattern but inverted. The pattern is identified when the price action of a security meets the following characteristics: the price falls to a trough and then rises; the price falls below the former trough and then rises again; finally, the price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs. The pattern completes when the price drops for the third time and then rises to break the neckline, confirming that bull has finally taken over.