CCO Bull Pennant on the Daily Time Frame
Updated
Price action is up-trending on higher time frames (weekly and monthly). The pennant formation shown is consistent with price consolidation within an uptrend. Pennant upper boundary has been touched twice (and almost a third time at the tip of the flagpole) and the lower boundary has been touched three times. The MACD is showing consolidation and is waiting for the breakout direction.
Flagpole spans $3.30. A similar price increase, if the pattern breaks to the upside, is possible. This increase should be measured from the lower pennant boundary. Entry at this point is risky as the pattern may break to the downside. A more cautious entry would require waiting for price action to break and close above the upper pennant boundary, with a retest of the upper boundary now serving as support. An Aggressive exit would take place at a price roughly $3.30 higher than the lower boundary of the pennant on the move that breaks to the upside, with more conservative exits anywhere in between.
This is not trading advice, but instead serves as a prediction of future price movements.
Flagpole spans $3.30. A similar price increase, if the pattern breaks to the upside, is possible. This increase should be measured from the lower pennant boundary. Entry at this point is risky as the pattern may break to the downside. A more cautious entry would require waiting for price action to break and close above the upper pennant boundary, with a retest of the upper boundary now serving as support. An Aggressive exit would take place at a price roughly $3.30 higher than the lower boundary of the pennant on the move that breaks to the upside, with more conservative exits anywhere in between.
This is not trading advice, but instead serves as a prediction of future price movements.
Note
Broke and closed to the downside. Will have to watch tomorrow, but it looks like this idea might be over. If price action moves back into the pennant this may be a fake-out, but with tax-loss selling still in effect, price action may be on its way down for a bit.
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