Visible Bear Flag Pattern
After observing the chart, the bear flag pattern is clearly visible as part of the price structure. Here are the details:
Identification of the Bear Flag Pattern
The bear flag pattern is a continuation pattern that usually occurs in a bearish trend.
It consists of:
- Flagpole: A sharp drop in price before the formation of the pattern. In the chart, the sharp drop from the area around 2,697,710 to 2,605,716 forms the “pole.”
- Flag: Price movement that consolidates within a rising channel after the pole. The chart shows the price moving within a narrow rising channel, reflecting a minor correction in the main bearish trend.
Bear Flag Confirmation
- This pattern is usually confirmed when the price breaks the flag support line downwards, which is often followed by a sharp drop to a level equivalent to the length of the flagpole.
Supporting Analysis
Fibonacci Levels:
- Fibonacci levels of 0.5 (2,650,426) and 0.382 (2,664,237) act as resistance which reinforces the possibility that the upward movement is just a correction within the main bearish trend.
SMA indicators:
- SMA 50 (2,652,821) and SMA 200 (2,681,538) that are above the price show the dominance of the bearish trend.
- The price failing to break the SMA 50 confirms the weak bullish momentum.
Bear Flag Pattern Conclusion
1. Market Sentiment:
The dominant bearish trend reinforces the potential for a bear flag pattern.
2. Strategy:
- Confirmation of the bear flag occurs if the price breaks the channel support around 2,630,000 to 2,604,809.
- Downside targets are around the flagpole length, which is expected to take the price to 2,538,577 or even 2,515,894.
After observing the chart, the bear flag pattern is clearly visible as part of the price structure. Here are the details:
Identification of the Bear Flag Pattern
The bear flag pattern is a continuation pattern that usually occurs in a bearish trend.
It consists of:
- Flagpole: A sharp drop in price before the formation of the pattern. In the chart, the sharp drop from the area around 2,697,710 to 2,605,716 forms the “pole.”
- Flag: Price movement that consolidates within a rising channel after the pole. The chart shows the price moving within a narrow rising channel, reflecting a minor correction in the main bearish trend.
Bear Flag Confirmation
- This pattern is usually confirmed when the price breaks the flag support line downwards, which is often followed by a sharp drop to a level equivalent to the length of the flagpole.
Supporting Analysis
Fibonacci Levels:
- Fibonacci levels of 0.5 (2,650,426) and 0.382 (2,664,237) act as resistance which reinforces the possibility that the upward movement is just a correction within the main bearish trend.
SMA indicators:
- SMA 50 (2,652,821) and SMA 200 (2,681,538) that are above the price show the dominance of the bearish trend.
- The price failing to break the SMA 50 confirms the weak bullish momentum.
Bear Flag Pattern Conclusion
1. Market Sentiment:
The dominant bearish trend reinforces the potential for a bear flag pattern.
2. Strategy:
- Confirmation of the bear flag occurs if the price breaks the channel support around 2,630,000 to 2,604,809.
- Downside targets are around the flagpole length, which is expected to take the price to 2,538,577 or even 2,515,894.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.