Consolidation in a bear pennant
Updated
The verdict from yesterday's post: We correctly identified a bullish divergence on the short-term timeframe and successfully did 3 short trades.
1-Hour Chart: I'm expecting a revisit towards the 24 cent area and then a continued consolidation in a bearish pennant. I would not risk entering the market at the moment.
4-Hour Chart: On the right side we can see the bear pennant (yellow converging lines) more clearly, this might not be the final form but its something Im expecting to see in one shape or another. After such a large drop due to the SEC announcement an extended consolidation period is the most likely outlook. While this is technically looking to be a bear flag/pennant it doesn't ultimately have to be, it will take time to see. A breakout to the down or upside in combination with divergences and indicators can provide a more clear picture.
Verdict: I wouldn't invest at the moment and just sit on the side-lines until a clearer picture can be formed. Happy Holidays!
1-Hour Chart: I'm expecting a revisit towards the 24 cent area and then a continued consolidation in a bearish pennant. I would not risk entering the market at the moment.
4-Hour Chart: On the right side we can see the bear pennant (yellow converging lines) more clearly, this might not be the final form but its something Im expecting to see in one shape or another. After such a large drop due to the SEC announcement an extended consolidation period is the most likely outlook. While this is technically looking to be a bear flag/pennant it doesn't ultimately have to be, it will take time to see. A breakout to the down or upside in combination with divergences and indicators can provide a more clear picture.
Verdict: I wouldn't invest at the moment and just sit on the side-lines until a clearer picture can be formed. Happy Holidays!
Note
Since I said we might see some sort of bearish pennant ... here is a plausible scenario. We Will see how it develops:Note
Orders are set for 0.22, 0.215, 0.21 and 0.2 not much but for a potential bounceTrade active
order at 0.2 fullfilled bullish divergence on the 4hrTrade active
LAUNCH OFF bullish divergence successfulNote
Next large resistances are 24.5 and 25.6
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