Another bull pennant appearing on the daily chart. The formation seems ripe for some action (3 month formation + declining volume + constricting bollinger bands).
I would rate this setup a 60% chance of success due to the following reasons:
• 3 month formation
• Flag appearing above the 200ema
• Candles at the end of the pennant show positive signs e.g. dragonfly doji on support, no real rejection from the top-end of the pennant
• Visible signs of bounces on the bottom of the pennant.
• Possible MACD crossover
Bearish sentiments
• Trade tarifs
• Lithium over supply fears (total BS in my opinion, but the market seems to buy it)
Low risk, high reward trade, I'll be watching closely the next few days.
I would rate this setup a 60% chance of success due to the following reasons:
• 3 month formation
• Flag appearing above the 200ema
• Candles at the end of the pennant show positive signs e.g. dragonfly doji on support, no real rejection from the top-end of the pennant
• Visible signs of bounces on the bottom of the pennant.
• Possible MACD crossover
Bearish sentiments
• Trade tarifs
• Lithium over supply fears (total BS in my opinion, but the market seems to buy it)
Low risk, high reward trade, I'll be watching closely the next few days.