RELIV INTL INC Stock Inverse Head and Shoulders: A Strategic Investment Opportunity

In the world of stock market analysis, identifying patterns that can predict future price movements is crucial for investors. One such pattern that has been widely studied and utilized is the inverse head and shoulders. This article delves into the potential of applying this pattern to RELIV INTL INC stock, exploring the strategic opportunities it presents.

Understanding the Inverse Head and Shoulders Pattern

The inverse head and shoulders pattern is a bullish reversal pattern that indicates a potential upward trend in the stock price. It is the opposite of the head and shoulders top pattern, which is a bearish reversal pattern. The pattern consists of three distinct parts: the left shoulder, the head, and the right shoulder.

• Left Shoulder: This is the first part of the pattern, where the stock price falls, forming a peak.
• Head: This is the second part, where the stock price falls again, forming a lower peak than the left shoulder.
• Right Shoulder: This is the final part, where the stock price falls once more, but then starts to rise, forming a higher peak than the left shoulder.

When the stock price breaks above the neckline, which is a horizontal line connecting the highs of the left and right shoulders, it confirms the pattern and indicates a potential upward trend.

Applying the Inverse Head and Shoulders Pattern to RELIV INTL INC Stock

Analyzing RELIV INTL INC stock, we can see a clear inverse head and shoulders pattern forming. The left shoulder was formed in the first quarter of 2021, followed by the head in the second quarter. The right shoulder was formed in the third quarter, and the stock price has since broken above the neckline, indicating a potential upward trend.

Strategic Investment Opportunities

For investors looking to capitalize on this pattern, there are several strategic opportunities:

• Buy on Break: Investors can enter a long position when the stock price breaks above the neckline, aiming for a target price that is typically equal to the height of the head plus the neckline.
• Stop Loss: A stop loss can be placed just below the neckline to protect against potential reversals.
• Diversification: Investors can diversify their portfolio by adding RELIV INTL INC stock to their existing holdings, as the inverse head and shoulders pattern suggests a strong potential for upward price movement.

Case Study: Apple Inc.

A notable case study of the inverse head and shoulders pattern is Apple Inc. In 2019, the company’s stock price formed an inverse head and shoulders pattern, which was confirmed when the stock price broke above the neckline. Since then, the stock price has risen significantly, providing a strong return for investors who identified and acted on the pattern.

In conclusion, the inverse head and shoulders pattern is a powerful tool for identifying potential upward trends in the stock market. By applying this pattern to RELIV INTL INC stock, investors can uncover strategic opportunities that could lead to significant returns. As always, it is crucial to conduct thorough research and consult with a financial advisor before making any investment decisions.