juls...Still too early to be calling a head and shoulders...

juls...

Still too early to be calling a head and shoulders formation...and personally, I think such a pattern would be a bit of a stretch given it's verticality!

Could be a double top forming as you say, but then we wont know that until it does drop below 2.5c.

Until then, in my opinion, it looks more likely to be pointing towards a rising-flag (pennant) formation, with a possible test of 2.9 or 3.8 likely in the short term.

The latter is more likely in my opinion, especially considering the obvious support at current levels..

As I see it, two likely short term directions...

1. Drop back to test 15 day EMA at 2.9, which I would expect to hold, before returning to test current levels once again...this would be typical of a rising-flag scenario.

2. Support holds at 3.3 and the price heads back up. First resistance should be encountered at 3.8c, before it hits psychological resistance at 4c...I say psychological, because Technically, I don't see any real resistance there. I would then expect any overshoot of 4.0c to be sold back down to test support at 3.8c. Again, this would be typical of a rising-flag scenario.

The breakout would occur with a volume-supported close over 4c...confirmation coming with a similar or higher close on the following day, also on reasonable volumes.

The last of the serious resistance should be faced at the 4.6/4.7c level after which it will be a clean slate.

I have a target time frame of 2-3 weeks, or 9-12 weeks, depending on various conditions being met.

That's my two bobs worth anyway!

Cheers!