Nov 27, 2009

STOXX50 - Head & Shoulders formation



Like in the textbooks.Even my both children could recognize such a clear pattern (H&S)of the conventional technical analysis. About the waves, i did not pointed them, because i want to see the prise movement during todays session and maybe in the weekend i will make it.



The bigger picture calls for short.There are few signs according to Dow theory.Broken trend line, lower bottom and lower top, but I still doubt about long term shorts, because (Y) wave has not 100% of (W) wave's size.That is around 3.043.
Have a look.



Good luck!

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