EWG (iShares MSCI Germany Index Fund) at 20.15 Potential Head-&-Shoulders Reversal Pattern Points lower (S-T SELL)

EWG could be forming a potential head-and-shoulders reversal pattern on the 60-minute chart if the shoulders’ support at 19.93 is broken. The downside break would allow bears to target 18.85 (Support 1) near the H-&-S measured target. Further weakness there would expose 17.89 (Support 2) which shields the 16.96 YTD low (04 Oct., Support 3).

However, if the 19.93 support holds, recycled strength above 20.78 would negate and reopen 21.04 (Resistance 1). Clearance above would signal the end of the consolidation and initiate the next upleg towards 21.33 (Resistance 2) then 22.16 (Resistance 3).

Trading Indication:
Short-term: Sell at 20.30 or higher (on break below 19.93);
Target at 18.85 then 17.89 and lower;
Stop Loss at 20.78 (2.4%)
Long-term: Possibly buy lower