Behind BARRs, Trapped in a Love Triangle

Nov 21, 2019

Our second attempt at the bullish falling wedge has failed (previous idea) and we now find ourselves testing major support levels near 7400. The failed wedge is an important indicator. As we are in the middle of a large symmetrical triangle I believe its failure is indicative of price action heading into 2020. While not picture perfect BARRs, I cannot help but notice many similarities between the orange line starting in 4/19 and in our current run taking off in 7/17. Our recent BARR has a lead-in that is generally accepted to be too short (less than a month) and it's much steeper than previously. However, so far it has played out much the same as last time.

Moving forward I would not be surprised to see a jump from here towards the 8.6k-9k area. A similar rise happened in 9/1/18 (1st green box) when price corrected after confirming the BARR line and we saw a secondary rise of ~25%. However, I would not expect prices to maintain these levels for long.

As much as the bull in me hates to say this, it would be healthy for this market to confirm the lower area of this triangle where I expect heavy buying pressure. Doing so would give buyers a lot of confidence during an upside breakout of this formation thereby lowering the chance of failure. Also, putting some distance between main street and the catastrophe that was 2018 can only be a healthy thing.

Jun 28, 2020

Note

Since the 3/13 low, we have seen a rising price with a shrinking volume. After 50 days of testing the upward bounds of the love triangle, we are starting to see a bearish breakout confirm. If you have minded this pattern since its inception, this is an excellent selling opportunity. If there is a bullish breakout *and* confirmation above this pattern then that would create an excellent buying opportunity. Alas, the latter has not yet occured after nearly two months of attempting to do so.