Well, it did not get ugly and I was wrong (If you don't know what I am talking about, check out Related Ideas); the formation was not a Complex Head and Shoulders.
After the price touched the bullish trendline (point A), bulls came back into the market. The bullish momentum increased thereafter and in a few days, the price jumped to the ~29.00 resistance level. At this point, a clear Broadening Formations, Right-Angled and Descending, became the chart pattern. As indicated on the chart, the average volume is rising throughout the formation. This indicates better performance after a breakout occurs. After the completion of the pattern on May 29th, we pushed down a little bit, but the price pushed back up shortly thereafter. And today, the price broke out of the pattern with a strong bullish candlestick (no candlestick this chart). My only concern is the ~34.00 resistance level, but in any case, I am long at the beginning of tomorrow's session.
P.S. Not really risk tolerant on any long position at this time (because of the weakening signs of the economy); will keep the stop tight and will trade it on the other direction if the pattern got busted.
After the price touched the bullish trendline (point A), bulls came back into the market. The bullish momentum increased thereafter and in a few days, the price jumped to the ~29.00 resistance level. At this point, a clear Broadening Formations, Right-Angled and Descending, became the chart pattern. As indicated on the chart, the average volume is rising throughout the formation. This indicates better performance after a breakout occurs. After the completion of the pattern on May 29th, we pushed down a little bit, but the price pushed back up shortly thereafter. And today, the price broke out of the pattern with a strong bullish candlestick (no candlestick this chart). My only concern is the ~34.00 resistance level, but in any case, I am long at the beginning of tomorrow's session.
P.S. Not really risk tolerant on any long position at this time (because of the weakening signs of the economy); will keep the stop tight and will trade it on the other direction if the pattern got busted.
Trade active
Trade closed manually:
2.333% Profit
