HOOD faces a critical test at trend line resistance; if it breaks through, an inverse head and shoulders pattern could target $180.

Now, on the other side of the story, up 8.17% is Hood. Now, what's great about Hood, guys? You can see this. We've got these three trend lines drawn. You can see from this first one, the declining wedge, we've had price when it came down to create this pivot that allowed us to then draw this trend line.

Then when price came back down, look at the consolidation before the break and the retest of that trend line. Now, we see price has broken down from this trend line, okay? The most recent one from the pivot low in May of this year.

Price, what is it trying to do? Exactly what it did right here, guys. It's trying to come back up and hit this inclining trend line, the same trend line that it just broke from, but also it's got a secondary contending long-term trend line from pivot to pivot to pivot.

So, we this is going to be a serious test for Hood in the coming day. 113.44. Now, if we gap over that, you'll will find resistance on this inclining trend line, $115.34. Notice how that lines up very closely with a gap fill considering the fact, too, um Hood is getting closer to overbought scenario.

It's not quite there, but it's certainly getting close. And the more it continues to push, the more of these levels of resistance will start taking over and helping this RSI to balance out.

Where I see eventually, once the price action can get through these areas and turbulent times in the coming days, I see Hood doing exactly what it did over here. It retraced to this inclining trend line, and beating this will allow it to retrace to this inclining trend line.

But in if that happens, and there's a lot of ifs, we've got an inverse head and shoulders pattern here, guys. I'll be happy to to mark this along with you and I detail that down on a future show, but that's why this break is so important for Hood.

We've got a lot on the line here. This is a big inverse head and shoulders pattern. Something that can make a move all the way up to the $180 range on the chart of Hood, but it's got to get through these major levels in the near future.

These levels will help trigger that inverse head and shoulders pattern.

inverse head and shoulders pattern here, guys. I'll be happy to to mark this along with you and I detail that down on a future show, but that's why this break is so important for Hood.

We've got a lot on the line here. This is a big inverse head and shoulders pattern. Something that can make a move all the way up to the $180 range on the chart of Hood, but it's got to get through these major levels in the near future.

These levels will help trigger that inverse head and shoulders pattern.