Bull FlagThere is also an inverse head and shoulders at the bottom but has broken neckline which can now serve as support.
Golden cross noted as well. A golden cross occurs when a faster-moving average crosses a slower moving average. Typically the 50 and the 200 DMA (daily moving average) are used. The death cross is opposite and would be when the 50 crosses down and through the 200.
A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. The bull flag chart pattern looks like a downward sloping channel/rectangle denoted by two parallel trendlines against the preceding trend. During this period of consolidation, volume should decrease or flatten out through its formation and resolve to push higher on the breakout. The actual price formation of the bull flag resembles that of a flag on a pole hence its namesake. I do not see a large volume bar at point where the flag resistance line (top trendline) was broken, however there is a large volume bar at the right shoulder of the Inverse H&S pattern.
The pole has to be long enough to support the weight of the flag or it will fall over )o: In other words a flag can not stay in the down channel for eons as it will become too heavy for the pole. If the retracement becomes deeper than 50%, it may not be a flag pattern so take another look. Ideally, the retracement (pull back) ends at or less than 38% of the original trend up.
Both the bear (appears after a steep move down) and bull flag (appears after a steep move up) chart patterns measure the target price as a projection using the length of the flagpole. I take the pole using the magnet and move it to the bottom trendline of the flag. I have seen folks project targets differently though.
Negative volume is very high. Short percent is over 9% with a bit over 7 days to cover. This is not a value stock! Revenue is growing a lot quarterly but EPS is still negative. Market cap is 28.2 billion. I am looking at the patterns and patterns do fail.
No recommendation.
The market is rarely rational. Price can move in ways that cause the maximum amount of pain the maximum amount of people )o:
