A Bullflag has formed on the Daily and is even more prominent on the 4hr. After being rejected at the top of the flag price is heading back down to retest the support of the flag. There was a bearish divergence on the Daily, which is
suggesting that price needs a retrace before heading higher. Due to this I have placed an entry at the bottom of the flag with a tight stop in case price breaks to the downside of the range. The 200 and 50 day MA are both trending upwards showing strength. The measured move of the flag as well as support and resistance areas of interest have been shown on the chart.
Trade set up is as follows:
Entry: 3.83
Stop Loss: 3.74
Take Profit #1: 4.13
Take Profit #2: 4.65
Take Profit #3: 5.66
** I will also be placing a buy order for the breakout of the top of the flag in the case that it doesn't retest the bottom support.
suggesting that price needs a retrace before heading higher. Due to this I have placed an entry at the bottom of the flag with a tight stop in case price breaks to the downside of the range. The 200 and 50 day MA are both trending upwards showing strength. The measured move of the flag as well as support and resistance areas of interest have been shown on the chart.
Trade set up is as follows:
Entry: 3.83
Stop Loss: 3.74
Take Profit #1: 4.13
Take Profit #2: 4.65
Take Profit #3: 5.66
** I will also be placing a buy order for the breakout of the top of the flag in the case that it doesn't retest the bottom support.