The ongoing Head and Shoulders formation detected on Dec 9th (see related ideas) is taking shape: indeed, looking at the recent price action we can see the following :
1) before yesterday (Dec 13th), a breakout of both, Mid Bolllinger Band and Kijun-Sen
2) yesterday Dec 14th), confirmation by a daily closing below the Tenkan-Sen.
Therefore, the former Tenkan-Sen support, currently @ 15’987 which was the former support should now be seen as the first significant resistance to look at ahead of the cluster ( KS and MBB 16’150-16’200) previously mentioned.
A failure to recover above 16’200 on a daily closing basis, would add further selling pressure, calling for a downside move towards the daily clouds support area , currently between 15’725 and 15’400).
Interesting to note that the 15’400 coincides roughly with the current level of the Head and Shoulders neckline !!! and breakout confirmation of this level would activate this H & S formation for a technical target of 14’348 which coincides with the former low of October 4th and also with the 23.6% Fib ret of the big rally, starting on March 23rd, 2020 @ 6628.75 towards the ATH @ 16’767,50 reached on Nov 22nd, 2021… [
RSI is below 50 (@ 47.71).
Have a nice trading day, all the best and take care !
Ironman8848 & Jean-Pierre Burki
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