1) Current Structure – Building the Reversal
At the moment, price is pushing towards the 320 region, which aligns with a key resistance area.
From a structural perspective, this move appears to be forming the head of a potential inverse (reverse) head & shoulders pattern, suggesting that the market may be transitioning from consolidation into a bullish reversal phase.
2) What We Watch Next – Formation of Shoulder 2
The key focus now is confirmation, not anticipation.
We are watching whether price pulls back to form the second shoulder.
- A potential support zone sits around 300, which aligns with:
- Moving averages
- Previous reaction levels
- Structural support
If price stabilises in this region and shows signs of holding, this is where we begin to consider positioning, always with controlled risk.
3) First Objective – Neckline Test
If the structure holds, the initial target is the neckline at 320.
This level acts as:
- A key resistance zone
- A confirmation point for breakout continuation
4) Next Level – Partial Profit Area
If price breaks and sustains above the neckline, the next area we monitor is around 334, which represents:
- A previous high
- A logical area for partial profit-taking
5) Measuring the Pattern
To project the potential move, we measure:
- Distance from head (~280) to neckline (~334)
- Total range ≈ 54 points
This is a standard approach when analysing head & shoulders structures.
6) Long-Term Projection
By projecting this distance from the neckline:
- 334 + 54 = 388
This gives us a longer-term objective around 388, where we would look to fully close the position, assuming the trend develops as expected.
Key Takeaways
- We are not predicting — we are waiting for structure to confirm
- The 300 area is critical for risk-controlled entries
- 320 (neckline) is the key decision level
- Targets are 334 (partial) and 388 (full projection)
- Position sizing and exit planning remain the most important factors
Disclaimer
This content is provided for educational and informational purposes only and does not constitute investment advice. Markets involve risk, and all trading decisions should be made with proper risk management.
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