Bullish or Bearish on 4hr pennant formation?

23 Nis 2019

Observations:

1. BNB entering its 3rd day of consolidation, clear bear volume decline can be observed in daily chart.

2. Bulls are using EMA'S as support, bulls defending EMA 26 aggressively.

3.Daily inside bar still intact and waiting for a break to confirm price direction.

For more details regarding the inside bar check:

Analisys:

We can see how the pennant is respecting yesterday's inside candle by a mere .02 cent establishing a lower high at 24.61 compare to yesterday's 24.63.
Not to the penny but I'm calling this a double top, a break of this level will most likely cause bulls to jump in given that the mid $24 range has acted as resistance for almost two days, also if BTC sees continuation today this will also favor the BNB bulls.

Please keep in mind that the day is still young and today's high is still unknown $24.61 can easily be taken out if BTC sees continuation.

Possible trade:

When I noticed the pennant yesterday I was tempted to move my buy order to get an early entry but the risk to reward was simply not there for me. Pennants per technical analysis ARE a continuation pattern, but in this scenario I am using it as an early indicator of where the daily price might go, playing the break of the pennant can give you an early entry, but you risk getting trapped in a fake out like some bulls did last night (arrow pointing small false break of pennant).

So in few words: A bullish break of the Pennant is my 1st confirmation, followed by a break of the daily inside candle, followed by a break of the ATH into a blue sky breakout

Having said that I am sticking to my game plan and will only get into a position if the mid $24 level is taken out clearly , given that I only tend to seek for 2 confirmations.

So what do you guys think? You think we are breaking this pennant bullish and heading to ATHs? or are the bulls going to lose the battle break the pennant bearish, lose the 4hr exponentials and maybe find solid ground near the $22 level where the daily exponentials are currently located? let me know! interested to know what you guys think! =)

Disclosure:
Please keep in mind that this are simply my ideas on the market, I am in no way shape or form qualified to give anyone any financial advise. All I'm looking for is to become a better trader with time and the only way too do this is to post what I am looking at and take criticism from those of you that been doing this for a very long time, having said that please feel free to call me out on any mistakes, or incorrect analysis the best way to learn is from each other as a community.