nftrh plus

NFTRH+; an Inverted H&S (pre-breakout)

A subscriber asked me about this chart several months ago and I’ve kept it slightly on radar since. In the ensuing months it has gone on to form a potential bottoming pattern.

There was big washout volume on the gap and left side shoulder and as the pattern has formed volume has waned, which is generally positive as investor spirits got tamped down. Daily MACD has just gone positive and RSI looks good as well. ADX shows the daily downtrend is exhausted and +DI is above -DI, which could be the very start of a new trend.

amc

What is also interesting is that the pattern’s measurement just so happens to coincide with a would-be gap fill at around 20.

Here is the weekly chart for perspective.

amc

A hold of the SMA 50 and a successful rise above the orange dashed neckline on the daily chart would target 20. The pattern fails with a decline below the right side shoulder and I would like to see that SMA 50 hold to stay interested.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason), which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.