Dow Jones - Bullish Flag
Fundamentally, it looks like the overall market sentiment shifted and the risk-on scenario is back with the US indices set to retest the all time highs. Technically the asset is in a strong uptrend as well despite the overbought RSI readings on the higher time frames.
The trade idea is to trade the bullish flag pattern on the break out. For additional confirmation, there should be a time filter of the 1 hour candle close above the flag + the short term Resistance. SL below the recent higher low. TP calculated based on the M P O projection which also coincides with a psychologically important level of 26600.
The break (preferably impulsive) should occur in the next 6 - 7 hours in order to pattern to be valid. Personally expect the break to occur on the US session open.
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Wish all a great trading day!
The trade idea is to trade the bullish flag pattern on the break out. For additional confirmation, there should be a time filter of the 1 hour candle close above the flag + the short term Resistance. SL below the recent higher low. TP calculated based on the M P O projection which also coincides with a psychologically important level of 26600.
The break (preferably impulsive) should occur in the next 6 - 7 hours in order to pattern to be valid. Personally expect the break to occur on the US session open.
Follow me and like the idea if you like my pattern analyses.
Wish all a great trading day!
Trade closed: target reached
The target reached in less then 4 hours. Follow me if you want to receive updates on similar pattern analyses.
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