Telcoin / TetherLong
TEL Symmetrical Triangle or Bull Flag Comparison
Is this a Symmetrical Triangle or Bull Flag?
Here is how we decide. The triangle is in white, the flag is in pink.
Symmetrical Triangle:
Bull Flag:
Analysis
The prior move has seen strong upward momentum (55%, 44%, 33%), which supports the idea of a bull flag if the triangle is sloping slightly downward.
However, if the triangle is symmetrical with equal pressure from buyers and sellers (not tilted), it’s likely a symmetrical triangle signaling indecision. I believe this is tilted upwards, signifying bullish. This is confirmed by the fact that net volume is $11 million above sell volume at time of writing.
If it’s breaking above the triangle now and aligns with my target of $0.009, the breakout could validate it as a bull flag continuation pattern.
2. Key Factors Supporting the Analysis:
Bounce off the 100-day Moving Average:
A bounce off a significant moving average like the 100-day MA is typically bullish, indicating that buyers stepped in at a key support level.
Breakout Above Triangle:
Early signs of breakout above the triangle suggest bullish momentum building up. If confirmed with volume, this supports the bull flag hypothesis.
Upcoming Catalyst (Public Hearing):
The public hearing for Telbank approval on December 5 could drive speculative buying, adding bullish momentum. There may be a small sell the news effect, but if the hearing is positive this won't last for long.
Short-Term Target ($0.009):
If this really is a bull flag, the measured move target can be estimated by the height of the flagpole (the previous upward move) added to the breakout point.
Risks to Watch:
Summary:
Given the price action and catalyst, the pattern appears more like a bull flag continuation. Monitor the breakout level and volume for confirmation. If the pattern holds, the short-term target of $0.009 seems reasonable.
Here is how we decide. The triangle is in white, the flag is in pink.
Symmetrical Triangle:
- higher lows and lower highs, representing a period of consolidation and indecision.
- The breakout direction typically depends on the preceding trend
Bull Flag:
- A bull flag appears after a strong upward move (the “flagpole”) and consolidates downward in a parallel or slightly sloping trend.
- It signifies a continuation pattern, with a breakout expected to align with the prior uptrend.
Analysis
The prior move has seen strong upward momentum (55%, 44%, 33%), which supports the idea of a bull flag if the triangle is sloping slightly downward.
However, if the triangle is symmetrical with equal pressure from buyers and sellers (not tilted), it’s likely a symmetrical triangle signaling indecision. I believe this is tilted upwards, signifying bullish. This is confirmed by the fact that net volume is $11 million above sell volume at time of writing.
If it’s breaking above the triangle now and aligns with my target of $0.009, the breakout could validate it as a bull flag continuation pattern.
2. Key Factors Supporting the Analysis:
Bounce off the 100-day Moving Average:
A bounce off a significant moving average like the 100-day MA is typically bullish, indicating that buyers stepped in at a key support level.
Breakout Above Triangle:
Early signs of breakout above the triangle suggest bullish momentum building up. If confirmed with volume, this supports the bull flag hypothesis.
Upcoming Catalyst (Public Hearing):
The public hearing for Telbank approval on December 5 could drive speculative buying, adding bullish momentum. There may be a small sell the news effect, but if the hearing is positive this won't last for long.
Short-Term Target ($0.009):
If this really is a bull flag, the measured move target can be estimated by the height of the flagpole (the previous upward move) added to the breakout point.
Risks to Watch:
- False breakouts are common in symmetrical triangles. Watch volume closely to confirm the breakout.
- If the price falls back below the 100-day MA, it could invalidate the bullish setup.
Summary:
Given the price action and catalyst, the pattern appears more like a bull flag continuation. Monitor the breakout level and volume for confirmation. If the pattern holds, the short-term target of $0.009 seems reasonable.
Related publications
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.