Are you looking for a profitable investment strategy in the stock market? One technique that has been proven to be highly effective is the inverse head and shoulders pattern. In this article, we will delve into how you can leverage this strategy to profit from CORUS ENTMT INC B stock.
Understanding the Inverse Head and Shoulders Pattern
The inverse head and shoulders pattern is a bullish continuation chart pattern. It occurs after a downtrend and signals that the price may reverse to the upside. The pattern consists of three peaks: a large middle peak, known as the head, and two smaller peaks, known as shoulders, on either side. When the price breaks above the neckline, which is the connecting line between the shoulders, it indicates that a new uptrend is about to begin.
Identifying CORUS ENTMT INC B's Inverse Head and Shoulders Pattern
In the case of CORUS ENTMT INC B, the stock has displayed a clear inverse head and shoulders pattern. As shown in the chart below, the pattern is easily recognizable with a distinct head and shoulders formation followed by a break above the neckline.
How to Trade CORUS ENTMT INC B with the Inverse Head and Shoulders Pattern
To trade CORUS ENTMT INC B using the inverse head and shoulders pattern, follow these steps:
- Identify the Pattern: First, identify the inverse head and shoulders pattern on the stock chart.
- Set a Stop Loss: Place a stop loss just below the neckline to protect your investment.
- Enter a Long Position: Once the price breaks above the neckline, enter a long position.
- Set a Profit Target: Set a profit target at a distance equal to the height of the head to the neckline.
Case Study: CORUS ENTMT INC B's Inverse Head and Shoulders Pattern in Action
Let's take a look at a recent example of CORUS ENTMT INC B's inverse head and shoulders pattern in action. In March 2021, the stock formed an inverse head and shoulders pattern, as shown in the chart below. After the break above the neckline, the stock surged in value, providing investors with a profitable trading opportunity.
Conclusion
The inverse head and shoulders pattern is a powerful tool for identifying potential trading opportunities in the stock market. By understanding how to identify and trade this pattern, investors can capitalize on profitable movements in the market. When applied to CORUS ENTMT INC B stock, this strategy can yield significant returns for those who know how to execute it effectively.
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