Classic Head and Shoulders to perfection

ChartMan

Legendary member
5,580 46
The chart attached shows the classic head and shoulders top from the current Bank of Scotland BSCT.
To calculate the drop, take the head (862) and draw a perpendicular line to cross the shoulders.Take that crossing value(826) and take it away from the head value(862). This equals 36. The drop will be 36 from 826 = 790.
It's no fluke that the price bounces right on 790.
This is followed( unusually) by a head and shoulders bottom , leading to a target rise to 824, finally making resistance at 832 before dropping again.
It's hard to say where this is going, but my feeling is the chart is at support on a longterm rising trend from the end of Feb 2000 ( ignore the big glitch from March to end of April 2001, all the banks did the same)
 

Attachments

ChartMan

Legendary member
5,580 46
No, I wish I had...I may play the breakout at 560 though, with a target price of 760 and very good R/R.
Stop loss at 530 ish.
 
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