Today the daily chart is pinging the key resistance area.
If it can hold the neckline and SMA 200 (let’s keep in mind the concept of bull traps/false breakouts) we’d like to see that continue, pending some chop, grind and back testing. However, the poke to a new high today is a positive and a marker for the near future, even if it were to drop to fill the gaps.
Bottom line: so far, so good for our Inverted H&S pattern. The pattern would measure to a test of the May high. But assuming a bull case, I am looking for a new high above that and the gap up above 40. As a side note, a drop to fill the gaps would wreck the pattern. So if it is an I H&S those gaps would be left unfilled until later, perhaps when the whole broad market comes under duress.
