FLAGLooks like a BEAR flag, but any flag can break up or down just like a any triangle can. This is a consolidation pattern, like a price congestion knot of sorts.
A flag needs a pole which is a fairly strong move in one direction, an up move for a bull flag by definition, and a down move for a bear flag . A bull flag usually slopes down, against the prevailing trend and often it is a pull back. A bear flag often tilts up which goes against the current trend and the pole which is down. A flag should be relatively short in duration, less than 3 weeks. A flag should not go on and on as it will become too heavy for the pole to support it. Taking a look at the pole in relation to the flag can help. A pennant is similar to a flag but is known to be more wedge shaped, they tend to narrow at the apex.
Price is below the 50 SMA . The 200 is still sloping up which suggests price is okay for now long term. The 20 just crossed down and through the 50 which is a bearish crossover.
Former parabolic arc so volatility should be expected.
No recommendation.
When buying pull backs, bear flags can hibernate and suddenly appear and mess up your pull back trade if you are not aware. They appear after sharp moves to the downside, but like a bull flag , can break either way.
Targets can be calculated up or down by moving the pole to the support line of the flag depending on the direction you think it will go. Today, this flag is trying to break to the downside, but the only thing that never changes, is change. News affects biotech more than other industries sometimes, which can make them difficult to trade at times.
