- Happy Friday! Following up on our chat from earlier this week on SHOP. Posting a zoomed in version of the chart with H&S formation and where i drew the neckline. I was getting neckline at aprrox $1430.
Based on what I read (please correct me here as needed), if the neckline support is breached, the estimated downside move for the head and shoulders is the height of the pattern—which is the difference between the prices of the second peak to the lowest low of the two retracements—subtracted from the neckline breakout point. That took me to about $1275. There might be more than a few things I may have gotten wrong here, so fire away! :)