Goldman Notes Head and Shoulders on Weekly Charts

Stocks Confirm Head and Shoulders, Then Rebound

Stocks: Bearish Head and Shoulders Reversal?

This daily chart is a classic head and shoulders top. If stocks drop through the previous low and support, it will be complete! We're heading that way!

Soybeans Selling, Profit-Taking Begins

That was probably the shortest-lasting long-only decision in history. As you can see from this chart, soybean bullish exhaustion occurred just a few minutes following my last posting. I went short almost as soon as I sent the "send" button on my previous posting. As you can see from this chart, a head and shoulders top formed almost immediately, and prices only weakly set another new price high. Then, the bulls began to liquidate to take profits. This is evident from the heavy selling on the volume indicator that I have enclosed in a blue box at the bottom left of the chart. Volatility was still very good, and I shorted at the second shoulder for another profitable short trade.

I expect that more profit-taking will occur into the close, and then another bullish run will occur as people like me liquidate their short trades, causing another price spike before the closing bell for the week. I also anticipate a very high probability of a new closing high, as I indicated on my posting earlier today.

Head and shoulders top?

Here depicted is what appears to be a possible head and shoulders top for soybeans today. However, longer-term charts still show no top.

Classic Head and Shoulders top

This is a classic head and shoulders top on soybeans that occurred at about 13:45 am EST Friday, Nov 30th. This is one of the candlestick patterns that I look for prior to a reversal. While I missed the last upswing, I went short at the second sholder once prices started to decline from the EMA. Great trade!