After breakingout from the inverted head&shoulders and reaching its target at $198.4usd, price has pulled back down to test the 0.786fibonacci retracement level.
BEORE THE TRADE WAS TAKEN ( check https://ci.covesting.io/tradeidea/retest-of-the-rectangular-flag-2)
AFTER THE TARGET WAS REACHED WITH THE RETRACEMENT TO THE 0.786
Price is currently making a lower-highs and a higher-lows, with two different diagonal moving to converge at the tip. These trendlines that are moving to meet at a point is forming a chart pattern called THE PENNANT FLAG PATTERN.
The normal way to trade a pennant flag pattern is to make sure there is a pole which the the flag is on. The flag should look more like a symmetrical triangle with little consolidation as the price must touch each diagonal trendlines, with a minimum of 4 touches(up which is the resistance and down which is the support)
A position will only be taken when price breaksout of the flag and closes outside it. Also the ichimoku on the 2hours time frame is signalling an EGDE 2 EDGE trade, a move to the down side
$1049 to $1044 and will liklely be held by the flag senkou span B which is always the support and also the 0.5fib.
Technicals suggests that price is slightly BULLISH, a pull back and little consolidation is currently taking place, the EDGE TO EDGE trade might not happen because the oscilator is fully oversold. Price needs to close inside the cloud before an E2E will be confirmed.
SELL: $1260, $1350 up to$1450
STOP LOSS: $1091
REMEMBER THE BIG HEAD&SHOULDERS PATTERN IS STILL VALID, waiting patiently for the right shoulder to be completed ( check https://ci.covesting.io/tradeidea/bchusd-2)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.