CERE 5 minute Feb 20th
CERE (Ceres Inc.) is currently bull flagging just around the previously mentioned 0.38 support/resistance level. The top purple line on this 5-minute chart is an exact duplicate of the one below (flagpole). Coincidentally or not (IMO), the price projection of the pattern measures exactly to my 0.50 price target (actual resistance level, I set my limit order slightly below to help assure a fill).
Whether or not the pattern or even this trade continues to play out is far from a certainty. However, bull flags (again, assuming this proves to be one) are continuation patterns and the fact that the pattern measures up to my previously determined target helps to confirm that this recent pause in CERE following the initial post-breakout rally is more likely just a brief consolidation vs. an end to the post-breakout rally. As always, take profits and use stops according to your own unique trading plan and rules.
Looking at this 5-minute chart, it appears that a pop over 0.38 & especially over 0.40 would most likely bring CERE to the 0.50 area in relatively short order. This would also be a good time to raise stops or add a trailing stop in order to protect gains in case this pattern breaks to the downside.