to the upside. A bullish pennant is a continuation pattern that typically signals the resumption of an uptrend after a brief consolidation period. This setup is a favorite among traders due to its clear structure and reliable breakout potential.
🧠 Technical Analysis:
Pattern Formation:
The pennant formed after a strong bullish move (flagpole) that began around May 7.
Price consolidated between converging trendlines from May 10–16, forming the pennant structure.
This consolidation was marked by lower volume, which is characteristic of pennant patterns.
Breakout Confirmation:
A breakout above the upper trendline occurred around May 17, confirming the bullish continuation.
The breakout was followed by strong bullish candles and increasing volume, adding conviction to the move.
🎯 Trade Setup:
Entry: Near breakout level (approx. $104,185)
Stop Loss: $104,185 — below the pennant structure, to protect against false breakouts.
Target: $115,397 — measured using the height of the flagpole projected from the breakout point.
🔍 Key Levels:
Resistance (Target): $115,397
Support (Stop Loss): $104,185
Current Price: ~$111,436 (at the time of analysis)
✅ Trade Rationale:
Bullish pennant pattern is well-defined and confirmed by price action.
Volume increased on breakout, reinforcing bullish momentum.
Risk-to-reward ratio is favorable, with minimal downside below pennant supportsupport
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