Hello Traders!
The chart of the DOW is really quite incredible... Recently price formed a textbook Inverse Head & Shoulders pattern, which led to a nice nearly to the all time high. Furthermore price looks to be consolidating in a Bullish Pennant just below the all time high resistance level.
The reason the Pennant below resistance is so significant is because this signals that investors are likely preparing to drive price higher to new highs. Think about it like a fighter resting before the next big fight.
Triple Top: In addition to the pennant price has now hit this resistance level for the 3rd time. The more times price hits a level typically the weaker it gets. After the 3rd hit the chance of a breakout increases dramatically.
In Summary: The "Triple Top" in conjunction with the "Bullish Pennant" means that there is undoubtedly a very high probability that price will breakout and make new all time highs.
This post is primarily meant to be educational vs a trade idea. Its charts like this that invigorate my technical analysis side and I hope it does for you as well.
Best of luck on your trading journey!
The chart of the DOW is really quite incredible... Recently price formed a textbook Inverse Head & Shoulders pattern, which led to a nice nearly to the all time high. Furthermore price looks to be consolidating in a Bullish Pennant just below the all time high resistance level.
The reason the Pennant below resistance is so significant is because this signals that investors are likely preparing to drive price higher to new highs. Think about it like a fighter resting before the next big fight.
Triple Top: In addition to the pennant price has now hit this resistance level for the 3rd time. The more times price hits a level typically the weaker it gets. After the 3rd hit the chance of a breakout increases dramatically.
In Summary: The "Triple Top" in conjunction with the "Bullish Pennant" means that there is undoubtedly a very high probability that price will breakout and make new all time highs.
This post is primarily meant to be educational vs a trade idea. Its charts like this that invigorate my technical analysis side and I hope it does for you as well.
Best of luck on your trading journey!
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