Potential Head-and-Shoulders? Wait for the Close

3 Jun 2025 · 1 min

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In this brief market commentary, the speaker identifies a classic head-and-shoulders pattern—not an inverse—forming around a daily fair value gap. He emphasizes that tomorrow’s closing price will be decisive: a bearish close today would likely lead to a bearish trade the next day, while a neutral or bullish close leaves the outcome uncertain. The analyst outlines possible scenarios but refrains from labeling the setup as an official trade call because the current level‑2 order‑book data is insufficient, underscoring a cautious, scenario‑based approach rather than a definitive recommendation.

It's a head and shoulders. This is not an inverse heads and shoulders. And if there's one place where you can form this, it's at this daily fair value gap. Again, tomorrow is going to be much more telling. If today closes bearish, then tomorrow is obviously going to be just a bearish trade. However, right now it's still level 2, and unfortunately this is not enough for me to make an official call. And so I'm going to state it clearly right now that I've given you guys the scenarios that could potentially happen, but because I am not telling you guys exactly where it's going to go, I will not count this towards an official call.