Price for the stock ABNB has found itself in a Pennant Pattern!!
On the second touch of the Falling Resistance, price was terminated in my Fib'd Kill Zone which has currently brought Price down to the Rising Support AND the 200 EMA.
-This touch will be the 3rd test of the Trend-line!
Now price still has Pinch Room to play in this pattern and Pennant Patterns can break Bullish OR Bearish so we need to be mindful of Price movements at the perimeters of the pattern!
On the Chart I have 3 possible outcomes:
1) If Price were to break bearish now, we could potentially see it test the Previous Low or the Break of pattern and bottom-side of the 200 EMA to continue lower in which case creates a "M" or Double Top Pattern
2) Price continues to Fill the Gap (Consolidate) until it builds up enough pressure to break Bullish and use the Break of Pattern or Fib Levels as a retest area to continue Higher
-OR-
3) Consolidates until enough Selling pressure enters and breaks Bearish and uses Break of Pattern or Fib Levels as a retest area to continue Lower
-Chart Patterns are known to fail 1/3 of the time!
-BEWARE OF FALSE BREAKS!
On the second touch of the Falling Resistance, price was terminated in my Fib'd Kill Zone which has currently brought Price down to the Rising Support AND the 200 EMA.
-This touch will be the 3rd test of the Trend-line!
Now price still has Pinch Room to play in this pattern and Pennant Patterns can break Bullish OR Bearish so we need to be mindful of Price movements at the perimeters of the pattern!
On the Chart I have 3 possible outcomes:
1) If Price were to break bearish now, we could potentially see it test the Previous Low or the Break of pattern and bottom-side of the 200 EMA to continue lower in which case creates a "M" or Double Top Pattern
2) Price continues to Fill the Gap (Consolidate) until it builds up enough pressure to break Bullish and use the Break of Pattern or Fib Levels as a retest area to continue Higher
-OR-
3) Consolidates until enough Selling pressure enters and breaks Bearish and uses Break of Pattern or Fib Levels as a retest area to continue Lower
-Chart Patterns are known to fail 1/3 of the time!
-BEWARE OF FALSE BREAKS!
