Jamie Dimon in the background… Everybody is looking at this chart today.
The famous head and shoulders, one of the best known charts for traders. Some trade them, some don’t but here’s a context and an observation based on the head and shoulders curently in place.
Volume is the highest during the left shoulder, which is the case and supports a bearish stance. If price breaks under the neckline around 131 we should see a continued downtrend. If you’re bearish, as I happen to be I’m monitoring the 131 level.
There’s a very good description of this pattern here.
I think a good trade idea would be a July bear spread 133/127. A voir.