As breakout traders, we look for clear sideways movements that we can define as Zig-Zag / Triangle / Irregular / Flat patterns. Once we spot one, we see the context, and then we project the possible target using Fibo extensions (the fibo extension is drawn using the previous impulse to the sideways movement)
In this case, we have a clear Flag Pattern (or zig-zag pattern). It has been moving on a range for the last 112 days between 146.00 and 130.00
One of the fundamentals ideas technical analysis relies on is that Institutional traders (the guys that really move the market) need to accumulate and distribute to buy or sell. That means that they have such purchase power that they can not execute a market order without moving the price. So, if they are buying, they will need to average that, which as a consequence this type of sideways movements are created because accumulation or distribution process is going on.
With all that said, we have this massive flag pattern that can be an accumulation or distribution process (we do not know that...); however, we have an activation level above the structure. That would give us more chances that we are on an accumulation process. If the price reaches our green line, we will consider the setup active, our stop loss will be below the whole structure, the first target will work as a Break-even signal, and 2nd fibo extension will work as the final target.
Thanks for reading!