NFTRH+; A Nice Bottoming Pattern

Here is a commodity (REE) that I have taken my eye off of in 2020. Well, no longer. When my eye sees a chart like this, it goes right back on watch.

REMX has formed a right shoulder to an Inverted H&S pattern and it is testing the resistance of the neckline. It is not an actual Inverted H&S until/unless it takes out that resistance. But if it does the target is around 64.

remx

Here is the daily chart showing a baby Inverted H&S within its bigger daddy. It formed its right side yesterday and today. It looks a lot like the chart of the China large caps iShares (FXI) reviewed in a previous update. Not a coincidence I don’t think, given that China is a major REE player.

This little feller has already broken its neckline with an implied target of around 48, which would break the red dashed neckline above. Relative volume is coming in too, which is helpful.

remx

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates 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) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.