NAKD Diamond Pattern in play

19 dic 2019

Price action in past few days has led to the emergence of a Diamond pattern. Given that Diamond bottom reversals are pretty rare, I would not be trading this inside the pattern but wait for a breakout confirmation accompanied by strong volume. I don't like this pattern in general and is more often than not a bearish pattern. An upside breakout also has little room to run before hitting another major resistance level, so I think a pullback to the pattern would be highly likely. You start chopping around there too long and it eventually all collapses. Just too risky here.