$SOL Analysis of SOL/USD (Head & Shoulders Pattern) - 1H & 4H Timeframes
1H Timeframe Analysis:
A clear Head and Shoulders pattern is visible.
Neckline has been broken, indicating a potential bearish move.
A retest of the neckline occurred, followed by a rejection.
A short trade setup is active, aiming for a lower price range.
A bullish pullback (small channel) is seen after the neckline break, which may act as a retracement before further downside.
Trade Setup (1H Chart):
Entry: After the neckline retest & rejection (~$140)
Stop Loss: Above the right shoulder (~$145)
Take Profit: At previous demand zones (~$130 - $125)
Risk-to-Reward Ratio: Favorable (>2:1)
4H Timeframe Analysis:
The Head and Shoulders pattern is also visible, reinforcing the bearish sentiment.
The price is respecting the descending structure after breaking the neckline.
Major support zones at $130, $120, and $117 (potential targets).
Trade Setup (4H Chart):
Entry: After a confirmed neckline break and retest (~$140)
Stop Loss: Above right shoulder (~$145)
Take Profit 1: $130 (previous demand zone)
Take Profit 2: $120 - $117 (strong support zone)
Conclusion:
Bearish bias confirmed on both 1H and 4H timeframes.
Entry zone: Around $140 after confirmation of the neckline retest.
Exit zones: First target at $130, second target at $120-$117.
Invalidation point: Above $145, where stop-loss should be placed.
Risk-to-Reward Ratio: Good (>2:1), making it a high-probability trade.