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SNAP Broadening Formation BreakoutHere we see a right angle broadening formation, with the accumulation line on the bottom. What appears to be an island reversal pattern appeared in the daily chart, marked by the yellow rectangle, which is typical of congestion patterns like this. Broadening formations are typical of late stage bull markets and are accompanied by irregular volume throughout. A majority of broadening formations carry bearish implications, and a breakout occured today in SNAP, although not by the generally "safe" 3% margin. I would expect a throwback, but the pattern implies a -65% move to the downside to 17.5, although not necessarily soon.
NYSE:SNAPShort
by BarnardR
2
Bitcoin in a right-angled broadening wedgeGood day Traders The H&S is still playing out from my previous post with a stunted 38.2 fib retracement to print the right shoulder, although I still expect another wave up to complete it. The downward sloping flag from my previous post seems to have turned into a right-angled broadening wedge as we found support at the same level as 13 Jan. Yesterday's drop happened as expected on account of that bearish divergence on the 4H StochRSI, as well as our daily SMA50 resistance. Although we never dropped as far as our $3440 support, we still fell relatively close, with a roughly $100 drop to $3480 (the same support we found on 13 Jan). This shows we still have strong support around the $3500 mark in the short term and that the bulls haven't handed the reigns over to the bears just yet, although they're quite close to doing so once this right-angled broadening wedge breaks out to the downside. We also have a downward cross of the weekly StochRSI so looking to retest that weekly SMA200 and potentially our $3k round number support, which I expect to be immense. For the short term, the $3500 support is holding well. We're oversold and we have hidden bullish divergence on the 3 hour StochRSI so I suspect we'll have another wave up to our broadening wedge resistance somewhere between $3870 and $3940 before we drop back below the SMA50 again. This will be more than a 61.8 fib retracement after our fall from $4100 and should complete the right shoulder of the H&S in my previous post, giving us a $3089 fib extension target, which coincides with the our broadening wedge target. Once we breakdown from the wedge, I suspect the weekly SMA200 is going to initially hold at around $3300 where we should see a bounce to retest the wedge as resistance, before dropping through our weekly SMA200 to find our targets. The question, is whether or not we are going to have a full weekly candle close below the weekly SMA200 (which has never happened and we don't want to start seeing that weekly SMA200 as resistance), or whether it holds or we have a strong wick below it before we close back above it. Either way, our $3k support and our weekly SMA200 are the key support levels which could keep us in a range bound market for the next few months if they prove to be too strong at this stage. The way I see it, we either get capitulation in the next few weeks or we remain range-bound for months to come. If we do get capitulation after the wedge breakdown and a drop below our weekly SMA200, then I'm expecting it to be a quick pukey drop, first to our H&S target then towards our bottom, before we have a strong bounce back above our $3k support to test our weekly SMA200 once we hit those levels. This is where we'll determine whether we have a weekly candle close above the weekly SMA200 or below it. Otherwise we find support above $3k and head back up towards $4200. Previous post:
COINBASE:BTCUSD
by Corn_Reaper
A Right-Angled and Descending Broadening FormationsPeople are over exited about Inverted H&S formation or Small Triangle formations but they forget the bigger pattern makes the direction of market. In daily chart I see this " Right-Angled and Descending Broadening Formations " which it can be Bullish or Bearish but in a down trend must of the time it breaks out bullish. As I see it can breakout upward now but because the length of RADB pattern is short the breakout will not have enough energy to move up the price too much. But if it not breakout and go down then it will touch the down trend line between 2.2K to 1.8k $. For more information about RADB pattern read this page: Right-Angled and Descending Broadening Formation
BITFINEX:BTCUSD
by nDman_sk
1