Bullish technical pattern. Opposite to the regular head and shoulders pattern, generally used to forecast beginning of a downtrend, the inverted head and shoulder, also known as a "head and shoulders bottom," is used to forecast the beginning of an uptrend. The pattern displays the following features. First, the price of the security falls though a lateral support line (left shoulder). Next price rises just below that support line (now resistance) to retest it, then falls again to a new low (head). From that point price establishes an oversold and solid base, moves upward toward the test prior lateral resistance line (right shoulder) and breaks above it. From that point on, resistance become support and price continues to climb.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr