A Reverse Head & Shoulders pattern is the most reliable charting pattern & signals a trend reversal.
MARA: Mara is showing a Double Reverse Head & Shoulders. MARA is in the early stages of beginning a short squeeze. It has over 50 Million shares shorted & a Short Float of over 40%. Additionally it has over 15 Million FTDs from January (trades that were failed to deliver by market makers) that have to be settled within 35 days (T+35).. Together this gives MARA and effective short Float of close to 60%, one of the highest on the market. On top of being so heavily shorted, it has a buy rating from analyst with a price target ranging from $12-$20 (current price is $7.70). A short squeeze would likely see prices move up quite a bit, below settling back in this range. Additionally, MARA has tailwinds as the largest public holder of BTC, which is rebounding. But regardless of fundamentals, MARA should begin a short squeeze this week based on the large short interest and large amount of FTDs that must be settled soon. The Double reverse Head and Shoulders is likely reflecting these catalyst.
IHS: IHS is an emerging market Wireless Cell Tower company that is one of the largest 3 based on number of towers (AMT, SBAC, IHS). IHS is much newer than AMT & SBAC and has a much lower market cap. (SBAC Market Cap= $30B, AMT Market Cap= $97B, IHS Market Cap=$2.5B). It had the misfortune of going public at the end of 2021 & therefore saw its market cap cut in half as the market slid further and further down. Warren Buffet & Cathie Wood are investors. IHS operates as a leader in the rapidly growing Africa & Brazil markets and is starting to rebound and gain attention now that 2023 has brought a rebound in the market- and specifically in communications stocks. IHS has a strong buy from Analyst, with recent price targets ranging from $15-28 (current price is $7.5). The Reverse Head and Shoulders is reflecting these catalyst.
On other to keep and eye on is JMIA (referred to as the Amazon of Africa)- it is showing a reverse head and shoulders pattern- indicating a trend reversal … which seems to coincide with the Companies Strategic turnout plan, including a new CEO, on the ground in Africa, to replace the co-CEO's that have been in place remotely for the past 10 years.
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