Hi matteotm,I still would like to see further confirmation that...

Hi matteotm,

I still would like to see further confirmation that this H&S is truly in play here and that the weekly candle
doesn't land up being nothing more than a wick....
All classical charting patterns have rather standard measuring rules for projecting potential target levels.
They are not perfectly reliable. Sometimes they are not met at all & sometimes they are surpassed but
I am often enough amazing at how accurate they can be.
For the H&S pattern, one measures the distance from the "neckline" to the "head" and projects that
same distance from the neckline in the direction of the breakout (down in this case).
In this instance, depending on which neckline you use, you get a target of either $6 or $7 (see chart below).
As a primarily technical trader (a lot of emphasis on that), I would begin looking for a reason (and I will still
need one) to enter once (and if) that area is met.
The exception would be if before then, it forms a bullish pattern of magnitude and breaks to the upside,
I would consider an entry (protected with a stop-loss).
All the best.