Today, we will speak about Mondelez International. Let's check what we can see on the chart:
a) The major structure is an ascending channel, where the price is about to make content with. There we expect a bullish reaction
b) Currently, we can observe a flat pattern that is 100% ready. From a technical perspective, flat patterns are continuation structures which means that after the confirmation breakout, we tend to observe movements in the same direction as the previous impulse.
c) Based on this context, we have defined an activation level (green horizontal line). The idea here is: IF the price reaches the activation level, we will expect a bullish movement towards the Fibo Targets. The maximum target is the higher trendline of the expanding channel
d) If the price keeps falling and breaks the ascending channel, we will cancel our view. Also, if the price reaches the activation level, we will define an invalidation level below the flag pattern.
e) The expected duration of the bullish movement is between 150 and 200 days
f) Another important element is the confluence between the ascending channel and the support/resistance level where we expect the Flag Pattern to be finished and not surpass that area (otherwise, we will consider that the pattern has failed)
Thanks for reading!
a) The major structure is an ascending channel, where the price is about to make content with. There we expect a bullish reaction
b) Currently, we can observe a flat pattern that is 100% ready. From a technical perspective, flat patterns are continuation structures which means that after the confirmation breakout, we tend to observe movements in the same direction as the previous impulse.
c) Based on this context, we have defined an activation level (green horizontal line). The idea here is: IF the price reaches the activation level, we will expect a bullish movement towards the Fibo Targets. The maximum target is the higher trendline of the expanding channel
d) If the price keeps falling and breaks the ascending channel, we will cancel our view. Also, if the price reaches the activation level, we will define an invalidation level below the flag pattern.
e) The expected duration of the bullish movement is between 150 and 200 days
f) Another important element is the confluence between the ascending channel and the support/resistance level where we expect the Flag Pattern to be finished and not surpass that area (otherwise, we will consider that the pattern has failed)
Thanks for reading!