As the saying goes, "What was resistance becomes support". I believe the green line has become support and the blue line becomes the next target (resistance). Hopefully the manual scale feature stays with this chart. If not,I think the stock has a chance of appreciating at least 50% from here(blue line).
This chart just for reference. Clearly the Bollinger Bands can remain in the Keltner Channel for along time, but I believe the Bands should be expanding soon. With a new Fed chair coming, possible downgrade by Fitch(?) and congressional shenanigans,I think we could have turbulent times ahead
$MGM was in a triangle pattern (2 blue lines, you can zoom out) from late 2008 until just breaking out in August of this year . With the Bollinger Bands expanding, I'm looking for at least a retest of that triangle ~17.71. A further target would be the green line
Just for a point of reference. This is a monthly SPX with modified yearly Bollinger Bands. I was bearish up until yesterday. But as it appears we are peaking above the yearly bands- as the saying goes: when the facts(charts) change, I change my mind. No idea where resistance is.
This is a HUGE 'what if' scenario. Only going by past 4 corrections. Similar angle of decline, similar time frames. I posted this chart of what could POSSIBLY happen. I am not great at predicting the future that far out. But as a trader, one should notice patterns in the past and see if those patterns repeat. Take this chart with a grain of salt.
Just an observation of a downward trend line for the last 20 years. Strong possibility of breaking trend line with Bollinger Bands expanding. Could possibly rise quickly (taking into consideration this is monthly chart)
It will be interesting to see this chart play out. If we clear the pink down trend line line, we should follow along the grey trend line (drawn thru the gaps). It should be soon, as the Bollinger Bands are expanding.