On a Daily time frame, Chipotle Energy has formed a Flag and Pole pattern, usually a Flag and Pole is a continuation pattern, which means it will resume the previous trend. The trend in Chipotle is bullish a small retracement has been witnessed forming the pattern. A breakout on the Upside will resume the uptrend which will follow a good down run making a new high- whereas a breakout on the downside would be a change in trend.

Currently, the price is trading above the Fast and Slow EMA, at the breakout the price should trade above/below both the EMA.

Currently, the momentum indicator RSI is trading near 49.06 marks, at breakout the RSI should not be greater than 80, if the RSI is 80 wait for the throwback and enter after the throwback.

Advice: Go Long if the above conditions are fulfilled.

Flag And Pole

Jan 16 2024