POG - down 30%

screencast.com/t/K2aa0hSJt

I've just had a look at POG. I entered this morning at 78.8 having already held a position with an average around 80 so no strategic advantage wrt bringing my SP down, but once the short trerm triangle pattern was invalidated by move up beyond a retest of it's lower trendline I was comfortable buying more based on indicators (notably MACD on daily/4h/1h).

Just wanted to open up the possibility of an iH&S pattern on the daily chart (not activated) for discussion. I've annotated the chart in some detail for discussion and would love other views on it.

Thanks

Fats

Hi shotry
That's not an inverse head and shoulder....IHS is the opposite of a head and shoulders. Upside down basically.
Hope that makes sense.

OK sorry Remo, of course it is so does that mean there is no value at all to the pattern? Obviously as a H&S it would be valid at the top of a rise but does it have any value here a the bottom?

Shotry wrote: OK sorry Remo, of course it is so does that mean there is no value at all to the pattern? Obviously as a H&S it would be valid at the top of a rise but does it have any value here a the bottom?

Hi shotry
The value of a head and shoulders pattern comes when it forms at the top of a trend and not at the bottom. When it appears at the bottom its likely to be a trading range or some thing similar. So there could be value in it but its most likely some thing else.
If it was an inverse head and shoulders then that has to be at the bottom of a trend.

Now with pog its best to look for a 123 low formation. This did have one back in july and that gave us a nice profit.Since then its come back down again. So chances are its in a sideways trend now and the level to keep an eye on is 88.If this can finish above that then this could head back to 135.

heres my chart...

dl.dropboxusercontent.com/u/4899609/pog24thoct.png

support...68(strong),,63
resistance...88,,127,,135,,137(gap)
hope that makes sence.

Thanks Remo

Possible 1-2-3 low entry above 77p on this one?



dl.dropboxusercontent.com/u/24866576/Dec...k%20PLC%20301213.png

M.