POTENTIAL INVERSE HEAD AND SHOULDERS PATTERN AHEAD OF KEY EARNINGS
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
A Positive Pattern
Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- The chart shows that a potential inverse head and shoulders pattern is forming. An inverse head and shoulders pattern is a positive pattern. In the absence of news and macro developments, an inverse head and shoulder pattern works about 65% of the time.
- “S” on the chart denotes the shoulders. “H” denotes the head. “N” denotes the neckline.
October 25, 2022