Market hesitating, pennant is formed

6 apr 2018

So, the bigger H&S pattern didn't confirm and we went sideways. But volume and amplitude decreasing indicate a pennant. That means the trend should breakout down, with the target ~$6100.

6 apr 2018

Nota

The $6650 line was pierced down after breaking out from the pennant, and it turned from support to resistance line. Bulls didn't manage to climb over it as bears were rejected on the Fibonacci confluence zone below. Still, bears are fighting hard to go down after a bear flag formed on the 15min chart. If they succeed, the target of the flag is $6200-$6100, as was the initial pennant target. However the Fibonacci confluence zone is highly supportive, and an even stronger opposition is expected at $6400 price level. If we break it, not too much support left down to $6000, so the fall should be dramatic.