MedGen Inc (MDIN)

[Jake168]

If we continue to head higher, finishing the week around .002, the weekly will begin to show the formation of an inverse head and shoulder pattern. This is very bullish. We need to break into the .002s and close/stay above .0026 in the next couple of weeks.

Inverse Head and Shoulders:

Inverse Head and Shoulders (Head-and-Shoulders Bottom)
The inverse head-and-shoulders pattern is the exact opposite of the head-and-shoulders top, as it signals that the security is set to make an upward move. Often coming at the end of a downtrend, the inverse head and shoulders is considered to be a reversal pattern, as the security typically heads higher after the completion of the pattern.



Again, there are four steps to this pattern, starting with the formation of the left shoulder, which occurs when the price falls to a new low and rallies to a high. The formation of the head, which is the second step, occurs when the price moves to a low that is below the previous low, followed by a return to the previous high. This move back to the previous high creates the neckline for this chart pattern. The third step is the formation of the right shoulder, which sees a sell-off, but to a low that is higher than the previous one, followed by a return to the neckline. The pattern is complete when the price breaks above the neckline.

http://www.investopedia.com/university/charts/charts2.asp