I am dealing with a clustering problem that requires me to cluster a set of objects based on 'Avg rate of change' in several factors for a give timeframe. Attached is the dendrogram I obtained. It appears to me that the data has several singletons and clusters are not well shaped. My question is :
1.) What should be the right treatment to data (in such situation) before I take them to clustering ? All variables are at the same scale.
2.) What could be the other fully unsupervised (unlike K-means) methods that I should analyze this data by ?