Big beautiful bull flag formation. Concerns? Divergence in MACD. We did get a nice bump in volume on that first bottom in the lower trendline, but then it flatlined after. This might take a little more time to form. Keep an eye on it. I like the fact RSI is forming a bottom. Whenever I see gaps in a flagpole I grow concerned about investors who desperately want to see the gap filled. Keeping this one on the backburner for now. Chart alone looks stupendous though. Friday's candle implies that buyers are coming back. Might just get the bump it needs on Tuesday/Wednesday.
Note
2/17/21 - When I did this write up I was planning to wait for another double bottom (which we achieved), but I was concerned about the market wanting to fill the gap. Out of dozens of stocks with bull flags like this that price broke out of and never reclaimed, this is one of a few that managed to reclaim its morning losses by close. I try to put myself in a corner whenever I trade - and by that I mean, I open my positions as darn close to my stop loss as possible. I'm looking at negative divergence on the mini-S&P and its looking like tomorrow morning is going to see a touch more red. A sympathetic response to the market will encourage this to bottom out on the lower trend line, but I'd like to see the daily candle close ABOVE todays highs. I have a feeling that the dip (if any) will be quick and offer little opportunity for buying the very bottom. That's my cue it's time to get onboard. And of course, the gap will have been filled.Note
Testing the 200 DMA. Would like to see a bounce here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.