See notes on chart. Price/volume action confirms the current pattern analysis. We had a massive volume
spike to the upside in the flagpole validating the start of the pattern and when the pennant
breaks to the upside on heavy volume
, the trade can be made to the upside target noted. Which is about a 10% move. As always wait for the confirmation signal. Using Williams %R
(9) should allow us to determine some form of overbought/oversold relationship during the consolidation. A higher risk entry could be at an oversold reading and a lower pennant
boundary touch on very low volume
, as it might suggest the sellers are gone, but the lower risk entry is a continuation of the prior trend. Look for volume
on up days toward the end of the pattern to be higher than on down days as this could give clues to the sentiment. As always trade responsibly and this doesn't constitute advice, just my opinion.