Basically I see this as a descending triangle, with a technical target possibly below 5k (yikes!). This bearish triangle looks more complete on the daily or 4hr chart but I also wanted to show you that this also looks like a massive bull flag (in pink) on the weekly time-frame LOL.
Target for the bull flag would be at the 20k resistance level, and I will enter a long if we get a weekly close above the top of the descending triangle. Stop for this trade will be placed relative to the breakout price. I will then look to flip short on a rejection of 20k and ride it towards the 13.5k support area; if we don't moon past 20k initially.
If we weekly close below the support area of 9.4-9.5k, or if we lose 9k, I will be opening a short with a stop around 95~~. Target for the short will be 5k, and I will likely play some of the green levels on the way down.
Until a breakout of the triangle, day traders may like to range trade the top and bottom of the structure using their preferred stops.
*There are some nice support and resistance levels hidden inside there as well but I wanted to keep this chart fairly clean and simple.
Play safe kids!
Target for the bull flag would be at the 20k resistance level, and I will enter a long if we get a weekly close above the top of the descending triangle. Stop for this trade will be placed relative to the breakout price. I will then look to flip short on a rejection of 20k and ride it towards the 13.5k support area; if we don't moon past 20k initially.
If we weekly close below the support area of 9.4-9.5k, or if we lose 9k, I will be opening a short with a stop around 95~~. Target for the short will be 5k, and I will likely play some of the green levels on the way down.
Until a breakout of the triangle, day traders may like to range trade the top and bottom of the structure using their preferred stops.
*There are some nice support and resistance levels hidden inside there as well but I wanted to keep this chart fairly clean and simple.
Play safe kids!
