UNI: 8$ is Near 🧐 🧐 🧐

UNI has been trading in a large bullish flag pattern on the daily timeframe. The price has been respecting the boundaries of the flag and making lower highs and higher lows. However, the price has recently failed to react to a break above local highs, indicating weakness and a possible further decline.

The bullish flag:

The bullish flag is a bullish continuation pattern that is characterized by a period of consolidation following a strong uptrend. The consolidation period typically takes the form of a pennant or flag, after which the price breaks out and continues its upward trend.

The failed breakout:

The price broke above the upper trendline of the bull flag on March 8, 2023. However, this breakout was quickly reversed, and the price fell back below the trendline. This failed breakout indicates that the bulls are not yet in control and that the price could be headed lower.

The downtrend channel:

The price has been trading in a downtrend channel since the failed breakout. The channel boundaries are defined by two parallel trendlines, one connecting lower highs and the other connecting higher lows. The price is currently approaching the lower trendline of the channel.

The support zone:

The $7-8 area is a strong support zone. This zone is defined by the horizontal levels of previous lows and the 200-day moving average. A bounce off this support zone could be expected.

The target:

The target for the bullish flag pattern is $16. This target is defined by the height of the flagpole, which is the distance from the start of the flag to the breakout point.