Bullish flag pattern appearing with a false downward breakout.
Resistances at 10,400 and 10,600.
Target 1 at 10,300.
Target 2 at 10,600.
I am looking to see a breakout from the flag pattern towards Target 1, which is an approximate size of the flag. Target 2 is calculated using the height of the pole but the final location is dependent on where we breakout of the trend. Assuming we get an S/R flip at the 10,400 resistance I will be looking to close on Target 2. Since Target 2 is close to the second resistance; the safe call is to sell 50 short of the resistance. The combination of the trend ending and the resistance can result in a hefty pull back.
Resistances at 10,400 and 10,600.
Target 1 at 10,300.
Target 2 at 10,600.
I am looking to see a breakout from the flag pattern towards Target 1, which is an approximate size of the flag. Target 2 is calculated using the height of the pole but the final location is dependent on where we breakout of the trend. Assuming we get an S/R flip at the 10,400 resistance I will be looking to close on Target 2. Since Target 2 is close to the second resistance; the safe call is to sell 50 short of the resistance. The combination of the trend ending and the resistance can result in a hefty pull back.
Order cancelled:
No upward breakout reached so the flag pattern turned out to be false. Was never able to enter a trading position on this one.