Papa Bear has had many short stories to tell and this is just another one of them. This one is special though. It has a diamond in it. 🙂
Big Brother attempted to re-test the descending triangle which formed in the third term of 2019. It attempted and it failed.
Often hard to decipher, diamond patterns tend to resemble a head and shoulders pattern with a little bit of a skew. While it is hard to imagine this happening in real life, in this short story, the diamond broke.
In its making, the diamond formed two trend-lines, giving clues as to its direction on the yellow brick road. One line served as support (lower – black) and the other which serves as resistance (outer – yellow). Confirmation of its route was the crossing of the black support line along with lots of little breadcrumbs it dropped along the way:
1. An increase in volume (bottom of the chart).
2. Increasing negative MacD.
3. Bearish cross in stochastic.
How does this story end? Papa Bear’s journey could be curvy, windy or downright straight and narrow. It depends on how much honey it finds along the way.
Its predicted final destination is marked on the chart (which coincidentally aligns with my analysis – Snookered or Not? – yes I’m always looking for confirmations. 🙂 ). Should it decide it found a pot of sticky gold off the beaten track (yellow resistance line) it’s journey will be invalidated.
Safe travels Papa Bear….
(Always use any idea in conjunction with your own technical analysis before trading.)
What goes up must come down.
Pa-a-lam for now.
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Creating charts that age well.
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