Something that we also know is that formations often form during periods of consolidation in the market & what we currently have forming is a potential pattern with a completion point towards the lower end of the channels range.
Entering at the bottom of the range is risky because it doesn't provide confirmation of a breakout, but what it does provide is an opportunity to create an excellent risk to reward situation. Because this is an index (which is typically more directional) I look at a conservative target being the retest of the channels highs & using an active trade management method to trail stops while you look to be involved in the continued move higher.
I hope you guys have a great weekend & as always if you have any questions, comments or just want to share your analysis, please leave them below.
Your Trading Coach - Akil