What Chart Pattern?

Good Morning Dynamic Traders

Welcome to the first day of the month.
I left you yesterday asking if you saw the chart pattern I did. For those of you who didn’t, the pattern I saw was a Head and Shoulder. I have marked this out on the day chart below.














This pattern is also present on the 4 hour chart and on the hour chart. It will be interesting to see how price behaves today, because the Head n Shoulder is actually upside down for an uptrend. In case I have now confused you, the Head should generally be higher than the Shoulders when price is in an uptrend. If this pattern wasn’t upside down I would expect price to climb. As this is pattern is the wrong way up what will price do?

In the day chart above you can see that price is currently at a resistance line, which has been used in the past for support and for previous resistance. The Value Index is also joining in on the action, which is also making life harder for price.

I’m looking forward to seeing what price does today. Will it climb like it would do for a conventional Head n Shoulder or will it fall as the head n shoulder is the wrong way up.

Happy Trading

Richard Monnery