Potential Issue

Daily Continuation with Potential Inverted Head and Shoulder Pattern

Spoke over the weekend about a technical formation that has the “potential” for issues with Nat gas. It has to deal with the developing inverted head and should pattern in the Daily chart. Not saying that this will happen but would be remiss in not bringing it to you attention. The chart above has the two shoulders and the inverted head highlighted.

Technical doctrine holds that the mathematical objective of the violation of the “neckline” of a fully formed head and shoulders construction is an extension approximately equal to the distance from the top of the head (in this case the bottom) to the neckline. Using that metric suggests a target of $14 (9.670 – 5.325 = 4.345 + 9.670 = 14.015).

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