Unless that big (red) pennant gets negated things will turn bad. Watch out for a break down.
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It's moving.
Volume needed for pattern confirmation.
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Volume and spike down to 6350$. Pattern confirmed, that's a start.
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I'm not a fan of H&S as a continuation pattern. Yet i wouldn't ignore the warnings shown below.
Look at H&S + resistance falling from highs ( red ) + rising wedge. Current pennant is just a minor pattern within the chart, in a quite delicate position.
Better safe than sorry, they say ...
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Fell short of bearish flag target.
Yet the move up lacks volume so far. Nervous price moves such as this are common on the days preceeding future expiration ( on Aug 31 ).
Anyway overall structure is still bearish.
Even choosing to ignore the rising wedge the big picture on 1D shows a big bearish flag possibily hinting the right shoulder of a H&S.
I'd suggest to keep an eye on today close, as price is close top the upper bound of the BB.
Bulls would score a REAL point only by breaking both the upper BB, the resistance ( red ) and finally negating the flag ( purple ).
In my opinion that's unlikely. For the time being i'd rather prepare for a correction.
This said market is king, in any case i will adapt my strategy accordingly.
I don't know about you fellow, but to me it's really not easy to guess where all this strenght comes from (building up above $7000 at the moment of writing)..
Yes good idea I am agree with you , what do you think about the reverse point ?
f-73
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@StephMoen, *IF* confirmed i'd say TP1 6250$ ( minmum "statistical" target ), TP2 6050$ ( purely theoretical ).
Stoch RSI / 4H is oversold though, so not an easy call in the very short timeframe.
Let's see and seek confirmation into volume, eventually.
StephMoen
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@ft-73, thanks, I think same, before 6250 we should get back stronger
f-73
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@StephMoen, hard to tell for now.
Anyway we have almost a BB squeeze even on 1D and Stoch RSI is overbought there.
Better to use quite *a lot of caution* in the next few days, it seems volatility is coming.