a period of consolidation that lasts for several months, we do not want to enter on the first breakout.
As you can see, the first breakout of consolidation in early March saw price return back into the consolidation zone.
This is classed as a fake breakout. What we want to do as smart traders is patiently wait for a second breakout.
The second breakout helps to confirm the buyers are in control and the probability of price continuing higher are put in out favour.
Price has now broken out of consolidation for the second time so we now need to wait for a breakout of the previous high.
The upwards momentum is looking strong and we may see a breakout soon.
One thing to note is that we have the £20.00 round number not far above price so it will also be worth waiting for price to clear this level.
This is on my watchlist and will be ready to trade at the right time.
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