Corrective pattern after Corrective pattern BA keeps going up
Today we have a great chart to share: "BOEING."
Since the bottom of the pandemic bearish movement (MARCH 2020), we have observed a sequence of corrective patterns and breakouts that makes a series of higher highs and higher lows (what defines a bullish trend). In the previous 3 patterns every time we had a breakout, a bullish movement continued. So, what can we say about the current one?
The current corrective pattern is very interesting because it is formed on the edge of the broken descending trendline (main bearish structure since March 2019). From a technical perspective is a great pattern to look for (Clear corrective movement on the edge of a Higher degree structure)
Another important detail is that we have a well-defined Bullish Structure. In this case is the yellow ascending channel, which provides us with a good take profit level. On the chart, we have provided a Green horizontal line (which is an activation level) and a red horizontal line (which is an invalidation or stop level). The idea here is to develop a setup with a risk rewards ratio of 2 and an expected duration in the case goes as planed between 40 to 50 days.
Thanks for reading!
Since the bottom of the pandemic bearish movement (MARCH 2020), we have observed a sequence of corrective patterns and breakouts that makes a series of higher highs and higher lows (what defines a bullish trend). In the previous 3 patterns every time we had a breakout, a bullish movement continued. So, what can we say about the current one?
The current corrective pattern is very interesting because it is formed on the edge of the broken descending trendline (main bearish structure since March 2019). From a technical perspective is a great pattern to look for (Clear corrective movement on the edge of a Higher degree structure)
Another important detail is that we have a well-defined Bullish Structure. In this case is the yellow ascending channel, which provides us with a good take profit level. On the chart, we have provided a Green horizontal line (which is an activation level) and a red horizontal line (which is an invalidation or stop level). The idea here is to develop a setup with a risk rewards ratio of 2 and an expected duration in the case goes as planed between 40 to 50 days.
Thanks for reading!