HEAD AND SHOULDERS FTSE100??

[donaldprice]

I was very skeptical posting this as i am not much of a Head and Shoulders individual, but now that Bloomberg as highlighted it i thought best now keep this on the radar. Strange things have been happening across the indice and FX space and therefore lets see if this so called santa rally occurs or just water of a camels back. Check this chart below. If does have some conflict. 

On one hand we have just broken through a major descending trend line resistance but we also have this very obvious H&S pattern. 



https://www.bloomberg.com/news/articles/2016-12-07/one-of-europe-s-hottest-stock-markets-of-2016-flirts-with-slide?cmpid=socialflow-twitter-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=twitter&utm_medium=social

 

 

[donaldprice]

Better chart below

 



[donaldprice]



Potentially you could see a sudden shock.sharp downtrend, but best scenario would be to see a lower high and the formation of a lower trend line resistance shaping up for a break out to the down side.