“False breakout is still there. Actually it gives us a great mid-term selling opportunity with a desirable risk to reward ratio: tight, low stop loss and potentially a nice, big profit (6000 USD ?). Only the price closing above the highs from Wednesday will deny this bearish option and will trigger a strong buy signal. „
The current price movements gave us the second option: the denial of the sell signal. After our analysis, the price moved sideways and created a pennant formation (pink lines). Yesterday, buyers managed to break the upper line of the pennant, which triggered us a buy signal. It was generally expected as pennant is a trend continuation pattern and that was the trend since the beginning of the April.