By Claus Andersen
16. Juli 2019
15 min chart:
Price is in a congestion area now- below 12.480 and above 12.300. The price action is a trading range. A potential head and shoulders pattern is forming. Normally head and shoulders patterns are just flag(continuation) patterns that never trigger the reversal. In this case, price as taken a long time to form this pattern, compared to the time the pullback from the highs in week 27. That could mean a major reversal up on these timeframes. Context is certainly in trading range mode, and I would like to see a BOPB before betting on the BO to either side. If price breaks the neckline at 12.480 ish the target is a 100% expansion of the pattern, that takes price to the 12.640 area. That would be a nice move. And it could happen in one day.
Support and resistance levels ajusted on the chart.
Summer is upon us, and that means potential for more overlap and narrow ranges. Be careful and prepared to take scalps.
Have a nice trading week.