A potential bullish continuation inverse head and shoulders pattern is developing in SM Energy Company (SM), as the stock reaches all-time highs. The uptrend is intact with support from the intermediate rising trend line, notwithstanding the recent down move in the broad markets.
Currently, the price is under resistance of the neckline, $73-$74, while the trend line is rising below the price providing support. With support and resistance meeting at a crossroads, I suspect the macro bullish trend will prevail.
Trigger: Daily close above $74, Target: minimum expected objective is $81, obtained by measuring the height of the pattern and expanding higher from the trigger point, by the same distance. Protective Stop: Confirmed move below $73, Trail Stop: confirmed break of the intermediate rising trend line.
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