The orange trend lines show a bear pennant is forming. We are overall in a bull market because the price action is above the 200 daily simple moving average. So, this may not play out. However, the 20 daily simple moving average just crossed below the 50, 80, and 100 daily simple moving averages. This could signal the start of a bear market.
If the bear pennant breaks to the downside, I have shown where possible targets could be using the white horizontal lines.
The first target is the .618 on the fibonnaci for the daily timeframe. This is the "Golden Pocket". Price tends to come down to Golden Pockets and bounce off of them.
The second target is the yellow simple moving average which is the 200 daily simple moving average. The price may come down and test this moving average.
The last target is the distance of the flag pole of the Bear Pennant assuming a downward break. Keep in mind that, bear pennants normally hit their price target using this method around only 32% of the time.
I do not recommend entering any trade until we get confirmation of a bullish or bearish break of the bear pennant.
If the bear pennant breaks to the downside, I have shown where possible targets could be using the white horizontal lines.
The first target is the .618 on the fibonnaci for the daily timeframe. This is the "Golden Pocket". Price tends to come down to Golden Pockets and bounce off of them.
The second target is the yellow simple moving average which is the 200 daily simple moving average. The price may come down and test this moving average.
The last target is the distance of the flag pole of the Bear Pennant assuming a downward break. Keep in mind that, bear pennants normally hit their price target using this method around only 32% of the time.
I do not recommend entering any trade until we get confirmation of a bullish or bearish break of the bear pennant.