Developing head and shoulders formation

A potential head and shoulders formation is developing. It may trigger a strong sell signal.

Signals from such formations are considered some of the strongest sell signals in technical analysis. Please note that such a signal may be triggered soon. In some situations it may be advantageous to sell before the sell signal is triggered, to avoid the risk of a bigger loss.

Important warning signs are:

Negative volume balance
Break through rising trend
Increasing volume down from the head
Decreasing volume heading up towards right shoulder
Increasing volume heading down from right shoulder

However, if volume development is positive and the stock remains in a rising trend, it indicates optimism among investors and further positive development for the stock.

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Stocks withDeveloping head and shoulders formation

Quartiers Properties Pref

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