{"id":5479,"date":"2021-03-19T10:32:29","date_gmt":"2021-03-19T10:32:29","guid":{"rendered":"https:\/\/madhuram.com\/?p=5479"},"modified":"2023-12-08T11:44:01","modified_gmt":"2023-12-08T11:44:01","slug":"amazon-forms-bullish-pattern-while-consolidating","status":"publish","type":"post","link":"https:\/\/madhuram.com\/amazon-forms-bullish-pattern-while-consolidating\/","title":{"rendered":"Amazon Forms Bullish Pattern While Consolidating Sideways: The Bull, Bear Case For The Tech Giant Amazon com NASDAQ:AMZN"},"content":{"rendered":"

The duration doesn\u2019t necessarily affect its validity, but the trend and market context should be considered. The drama of the chart escalates as AMZN\u2019s price vaults over the flag\u2019s upper boundary, propelled by a resurgence in volume. This breakout is the market\u2019s cue\u2014a call to action for investors. In the world of trading, bull and bear flag patterns are two sides of the same coin, each narrating the ebb and flow of market sentiment in their unique way. The bull flag, a beacon of positivity, typically surfaces during an uptrend and implies that buyers are momentarily consolidating gains, ready to propel the market higher.<\/p>\n

Bullish traders will want to watch for a break up from the upper descending trendline of the flag formation, on high volume, for an entry. When a stock breaks up from a bull flag pattern, the measured move higher is equal to the length of the pole and should be added to the lowest price within the flag. Meanwhile, the price action gradually creates an Expanding Triangle with bearish inclination (orange), which is known to have a strong bullish potential.<\/p>\n

Short squeezes can introduce a lot of volatility into stocks and send share prices sharply higher. These squeezes offer opportunities for trading, but they often require different strategies and more caution than traditional breakouts. Buying the pullback means that traders will enter long positions when the price retraces and tests the previous highs. A stop-loss order should be placed below the lows of the pullback to protect against a further decline. The better-performing flags are ones where there is a strong flagpole, and the flag is in a tight formation. That way, they get into the trade early and be there to capture the price breakout from the consolidation.<\/p>\n