RE: Head Shoulders Formation25 Mar 2021 22:18
Hi Bluebelly,
This is nothing to worry as far as TA is concerned. We are still forming the right shoulder. 90p to 89.5p zone offer a good support and we are oversold on all of the technical indicators. For the H&S to be invalidated we need to break 72p on the charts. The price action needs an external event to change direction. I feel any news can move this back up towards £1.20. A break of £1.20 should take us towards £1.80.
Technically the chart is still looking very positive. The H&S took many months to form so i do not see this as a worthless exercise. Price action is coming to an area where i see it's very risky for me to be not long in the stock. Even today's close is positive. 95p offers some support. There is a small gap at 91p and it could turn after filling this gap.
We could be in a channel. From 80p to £1.93. Even if we were to go to 80p we would still be in the right shoulder. The H&S formation started in July 2020. So i think it will work because the company has made good progress since then.