[elang]

Good morning guys,

For those of you who had the chance to hold on longer to the trend break short play we made, you could have profited at least 70 pips.

I had a loosing day and too many contradictory signals so i decided not to trade for the remainder of the day.

As i predicted the price break-out (bearish) from the ascending trend line started at 9260 went as far as the 9360/50/40 area after which it reversed.

This was also 50%.

On the upside for now our next targets are: 9454 > 9564 > 9570

On the downside possibilities are that the price bounces of 9545 and declines to retest 50% or the 9340 area and then 9260

As the facts have made it clear we have a right shoulder at 9340 a left shoulder at 9348 and a neckline around the 9454 area.

Head and shoulder reversal patterns are extremely reliable signals, just like the evening star on yesterdays short trade.

In theory probable profits on a neckline break from a head and shoulder pattern should be projected by calculating the distance in pips from the HEAD of the pattern to the neckline > in other words from 9260 to 9454 are about 200 pips > that projected of 9454 is about 9650 as a projection after the break of the neck line (IF it happens)

We only use IFs in TA, there are no certainties.

Thats pretty much it for now.