The price of Firstrand has broken out of a double top formation (“M” shape above 3220).
The double top is considered a reversal pattern in that it warns of the preceding uptrend reversing. The height of the pattern projected from the breakout area at 3220 predicts a further downside target at 2890. Often, after the initial breakout, the price will rebound towards the breakout area before resuming weakness.
A rebound could offer those trading this type of pattern a better short entry price, thereby improving the risk of the trade relative to the expected reward. Provided the price does not close above 3220, the projected target at 2890 remains favoured.