As can be seen from the chart, the pennant pattern had been forming for ten days. Now, the price finally finished the pennant and broke out of the trend line, with the expected direction. Also, the price broke out of the Bollinger Bands at the same time. It looks like strong support pushes the price all the way up. How far will it go?
The price already moved on top of the Ichimoku cloud; however, the cloud moved up as well, which is considered a bearish signal. Although the MACD still shows a bullish signal, Stochastics and Williams R% go beyond the overbought line. The overbought situation could last for a while; however, it’s very unstable. We should not trust an unsafe condition. Besides, the price broke out the Bollinger bands. As we know, the Bollinger Bands always push the price towards the middle line. The price may remain high; however, we should pay more attention to the price.
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