On the 1hour chart of nas100, a ranging period is observed. The market has hit the range at 3 different points (2 at the top, 1 at the bottom). Before the bullish breakout is observed (refer to the link attached), the market will have to even out the number of times it has hit the range therefore the move in the range would be a bearish one.
A 'w' pattern formed which indicates a reversal in the trend (bearish) so we should be expecting a bullish move this week. It's also important to note that the retracement that always happen after a pattern has been formed have already happened so it is safe to open a position based on the daily chart. The expected tp is indicated by the rectangle.
The market formed a W chart pattern in long term and has been dancing (consolidating) around the resistance line for some days now. The consolidating market formed it's own support level which rejected the price yesterday but it has a long way to go to hit it's resistance level.
I plan on waiting for the price to drop to the resistance line that is supposed to become support (as is peculiar with this pattern) to confirm the continuation of the pattern then I'll buy. So we should keep an eye on this chart!
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After head and shoulder patter the false breakout is over so the question is will the next breakout begin? Check the resistance line to see an evening star forming right below it. This is a clear indicator that the next breakout is about to begin.
