Title: SCANDIUM INTL MNG CRP ORD Stock Inverse Head and Shoulders

Are you looking to capitalize on the inverse head and shoulders pattern in the SCANDIUM INTL MNG CRP ORD stock? Look no further! In this article, we'll delve into the intricacies of this pattern, its implications for SCANDIUM stock, and how you can leverage this information to make informed investment decisions.

Understanding the Inverse Head and Shoulders Pattern

The inverse head and shoulders pattern is a reversal pattern that indicates a potential change in the direction of the current trend. It consists of three key components: the left shoulder, the head, and the right shoulder. Typically, this pattern appears when the stock is trading at lower highs, forming the left shoulder, followed by a lower low, forming the head, and then a higher high, forming the right shoulder.

Why is the Inverse Head and Shoulders Pattern Important for SCANDIUM INTL MNG CRP ORD Stock?

In the case of SCANDIUM INTL MNG CRP ORD stock, the inverse head and shoulders pattern suggests that the bearish trend may be reversing. This is significant because it indicates that the stock may start trending upwards in the near future.

Analyzing the SCANDIUM INTL MNG CRP ORD Stock Chart

Let's take a look at the SCANDIUM INTL MNG CRP ORD stock chart to understand the pattern better. As we can see, the stock has formed a left shoulder at 10, a head at 8, and a right shoulder at $12. This pattern is indicative of a potential bullish reversal.

Leveraging the Inverse Head and Shoulders Pattern

If you believe in the validity of the inverse head and shoulders pattern, you can leverage this information to your advantage. Here are a few strategies to consider:

1. Buy Orders: Place a buy order at the breakout level, which is the highest point of the right shoulder. This level is likely to act as support after the breakout.
2. Stop Loss: Set a stop loss just below the lowest point of the head to protect against potential reversals.
3. Take Profit: Determine a take profit level based on your risk tolerance and market conditions.

Case Study

Consider a scenario where you entered a buy order at the breakout level of 12. If the stock continues to rise, you can adjust your stop loss to 10 to lock in profits. However, if the stock fails to break out and falls back below the lowest point of the head, you may need to exit the trade and reassess the situation.

In conclusion, the inverse head and shoulders pattern in the SCANDIUM INTL MNG CRP ORD stock suggests a potential bullish reversal. By understanding this pattern and implementing the appropriate strategies, you can capitalize on this opportunity and potentially increase your investment returns.

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