I vote up. We appear to be creating a fairly neat bull pennant here at the top of our run-up.
This is a VERY simple analysis, using nothing but trendlines and an ordinary fib retracement. However, I find that when I keep it simple, I get the best results. I find that many times, during bullish runs like this, after our first leg up, the 1.68 becomes a very important level to breakthrough for the second leg up. Thus, I've placed my first bullish target around that level. However, should we breakdown significantly, I don't see much support until we get to around $18.50. I will be trading this based on a solid break AND CANDLE CLOSE out of the pennant on the 4hr in either direction.
This is a VERY simple analysis, using nothing but trendlines and an ordinary fib retracement. However, I find that when I keep it simple, I get the best results. I find that many times, during bullish runs like this, after our first leg up, the 1.68 becomes a very important level to breakthrough for the second leg up. Thus, I've placed my first bullish target around that level. However, should we breakdown significantly, I don't see much support until we get to around $18.50. I will be trading this based on a solid break AND CANDLE CLOSE out of the pennant on the 4hr in either direction.
Comment:
Switching from Heiken to regular candles for a moment and zooming in shows us our trendlines and fibs are looking good and well placed. In the first pink circle we see a classic retest after the breakout, and in the yellow circles we see both our trendline and fib acting as strong (and pinpoint accurate support)
