I try to avoid contradictory analysis with the old "the market might go up if... or the market might go down if ...." but I'd be remiss not to point out both of these technical levels to watch on this IWM 60-minute chart. We have both a pretty well-defined & fully mature bull pennant pattern in place as well as a pretty extended uptrend line. Pennants are continuation patterns just like their closely related cousin, the bull (or bear) flag pattern, meaning that they typically form in around the middle of a fairly powerful, mostly uni-directional trend. The sharp move leading up to the pennant consolidation pattern is known as the flagpole & just as with a bull flag pattern, to calculate the expected price target for these patterns you simply add the distance of the flagpole to the lowest point of the pennant at the last price tag just before prices break out. More often than not, the move following the breakout of a pennant pattern is just a sharp as the move leading up to the pattern.
IWM Bullish Pennant + Uptrend Line Formation
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