A pennant/flag pattern has been printed on the chart. Being a continuation pattern this is indicating a further move high on the price. Confirmation of this is with the Elliot Wave, though I will admit, I am not completely sold on this being a proper impulse wave, however, as per definition the 2-3 section of the wave is the strongest so far, and the 3-4 is the weakest pullback. I just dont like the duration of 3-4 relative to 1-2.
For the flag to be confirmed we need to wait for a pullback and retest of the price to the upper red trendline defining the flag. The pullback could go as far as the dotted blue line. A move above 1.43 indicates that the move is likely underway at a target at 1.69 seems most reasonable given its height relative to the 2-3 impulse wave. This would be a measured move up.
I would wait to enter the trade until the upper resistance level of 1.43 has been reached, holding a stop at the 1.37 level. This is a decent amount of risk, so I would probably reevaluate the actual stops and targets when I put the trade on.
For the flag to be confirmed we need to wait for a pullback and retest of the price to the upper red trendline defining the flag. The pullback could go as far as the dotted blue line. A move above 1.43 indicates that the move is likely underway at a target at 1.69 seems most reasonable given its height relative to the 2-3 impulse wave. This would be a measured move up.
I would wait to enter the trade until the upper resistance level of 1.43 has been reached, holding a stop at the 1.37 level. This is a decent amount of risk, so I would probably reevaluate the actual stops and targets when I put the trade on.
Trade active
If it doesn't begin to move higher in a few hours I'd say the flag is invalidated.
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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.