Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Will This Massive Reverse Head & Shoulders Bottom Execute?

by April 16, 2023
April 16, 2023
Will This Massive Reverse Head & Shoulders Bottom Execute?

There are plenty of reversing patterns in technical analysis, but my personal favorite is the combination of a weekly positive divergence and a bottoming head & shoulders pattern. The positive divergence captures the slowing downside momentum and the head & shoulders provides confirmation that prices are indeed turning up. Keep in mind that a downtrend is nothing more than a series of lower highs and lower lows. When a potential neckline forms in a bottoming head & shoulders, it suggests that a prior “lower high” is being tested. The executed breakout then confirms that a new uptrend is underway.

During 2022, the worst-performing sector was communication services (XLC), the home of internet stocks ($DJUSNS), among others. Higher interest rates reduced the value of future earnings and earnings growth, but we’re now seeing interest rates come down. As a result, the XLC is on the verge of a beautiful reversing pattern and potential breakout. Check this out:

The bottom panel shows the XLC leading the stock market higher in 2023. I expect this to continue and the above breakout would certainly add to that likelihood.

I’m following one communication services stock, in particular, that could explode higher if I’m correct about the XLC gaining ground throughout 2023. I’ll be writing about it in our free EB Digest newsletter on Monday morning. If you’re not already subscribed, simply CLICK HERE to provide your name and email address and we’ll get you set up and send along this stock. There is no credit card information required and you may unsubscribe at any time.

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
Week Ahead: Markets Stare At Imminent Consolidation At Higher Levels; Avoid Mindless Chase of the Upmove
next post
As Fed Plays with Fire, Focus on Strength, Ignore Intraday Volatility, and Expect the Unexpected

You may also like

Pullbacks & Reversals: Stocks Setting Up for Big...

June 30, 2025

Crucial Insights: How Rising Rates IMPACT You!

September 7, 2023

UPSidedown Earnings Sink Stocks

April 26, 2023

Week Ahead: Short Week May Not See NIFTY...

March 25, 2024

SOTU’s Not-so-Subtle Implications for the Market

February 10, 2023

PayPal Stock Price Breaks Out: How to Take...

August 26, 2024

A Foray into Currency Pairs

June 15, 2023

MEM TV: Simple Way to Identify a Buy...

February 23, 2024

How Far Will the SPY Push?

August 12, 2022

Mish’s Daily Video: Granny Retail — Can the...

August 24, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • America’s Not-So-Secret Secret Police

      August 7, 2025
    • Poll: Nearly 1 in 4 Americans Think They Have a Personal Social Security Account

      August 7, 2025
    • Republican senator claims RFK Jr. mRNA vaccine decision undermines Trump agenda

      August 7, 2025
    • Who is Anita Dunn? The Biden confidante who clashed with Hunter grilled in House autopen probe

      August 7, 2025
    • Case v. Montana Brief: Limit Loopholes to the Fourth Amendment

      August 7, 2025
    • Trump opens $9tn US retirement market to crypto in landmark executive order

      August 7, 2025

    Categories

    • Business (8,704)
    • Investing (2,184)
    • Politics (16,333)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved