- Potential head & shoulders pattern forming
- Today saw a heavy sell-off to test the trendline but closed upon it.
- A close beneath prior swing low confirms the patterns and projects a target to around 22.46
- This target also meets the potential rising trendline from March 2011
- Ratio line trend has broken showing change in relative strength between FTSE100 and Next Plc
- Volume profile (2nd pic) shows active trading around 25 – if this level breaks then volume profile has been very thin until around 22-23, and these thin areas of volume can act as vacuumes and provide little support for a decline
“Trade what you see, not what you think…”