RARE is forming 30M Bull Flag
In the chart, there’s a noticeable strong upward movement before the price starts to consolidate and move downwards in what seems to be a parallel downward channel. This fits the definition of a bull flag.
Key Features:
1. Flagpole: The strong upward price movement prior to the channel is the flagpole. This move is typically steep and occurs over a relatively short period, which is visible in your chart.
2. Flag: The downward sloping channel after the initial upward surge. This represents a period of consolidation before a potential continuation of the previous trend. The chart shows this phase quite clearly, with the price making lower highs and lower lows within the channel.
Price Action:
- The price is currently near the lower boundary of the channel, suggesting a possible breakout to the upside if the bull flag pattern completes successfully.
- The presence of buy and sell signals (as shown by the B and S labels on the chart) within the channel further indicates trading activity within this consolidation phase, with sellers dominating the upper part of the channel and buyers stepping in near the lower part.
Next Steps:
- Breakout Confirmation: A breakout above the upper trendline of the flag (typically on increased volume) would confirm the bull flag and suggest a continuation of the prior uptrend.
- Risk Management: However, if the price breaks below the lower boundary of the flag, it could invalidate the bull flag and potentially signal a reversal or further downside movement.
Conclusion:
The chart is showing a classic bull flag pattern, which is generally a bullish continuation pattern. Monitoring for a breakout above the flag will be crucial to confirm this bullish bias. If a breakout does occur, it could lead to a continuation of the upward trend seen in the flagpole phase.
Key Features:
1. Flagpole: The strong upward price movement prior to the channel is the flagpole. This move is typically steep and occurs over a relatively short period, which is visible in your chart.
2. Flag: The downward sloping channel after the initial upward surge. This represents a period of consolidation before a potential continuation of the previous trend. The chart shows this phase quite clearly, with the price making lower highs and lower lows within the channel.
Price Action:
- The price is currently near the lower boundary of the channel, suggesting a possible breakout to the upside if the bull flag pattern completes successfully.
- The presence of buy and sell signals (as shown by the B and S labels on the chart) within the channel further indicates trading activity within this consolidation phase, with sellers dominating the upper part of the channel and buyers stepping in near the lower part.
Next Steps:
- Breakout Confirmation: A breakout above the upper trendline of the flag (typically on increased volume) would confirm the bull flag and suggest a continuation of the prior uptrend.
- Risk Management: However, if the price breaks below the lower boundary of the flag, it could invalidate the bull flag and potentially signal a reversal or further downside movement.
Conclusion:
The chart is showing a classic bull flag pattern, which is generally a bullish continuation pattern. Monitoring for a breakout above the flag will be crucial to confirm this bullish bias. If a breakout does occur, it could lead to a continuation of the upward trend seen in the flagpole phase.
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