Commodity Trading Interpret Bull Pennant Chart Pattern

Commodity Trade Bull Pennant Chart Pattern

Bull pennant chart pattern forms what looks like a rectangle pattern with a slight downward tilt. The rectangle is formed by two parallel lines that act as support level and resistance level for the commodity trading price until the commodities price breaks out. Generally, the bull pennant chart pattern will not be perfectly flat but it will be sloping and having a slight tilt.

The bull pennant chart pattern is found within an upwards commodities trend. Bull pennant pattern is a continuation chart pattern where the price retraces slightly, bull pennant chart pattern is therefore a slight commodity trading price retracement with narrow commodity trading price action that has a slight downwards tilt. Buy signal is generated when the price penetrates the upper line of the bull pennant chart pattern. The pennant portion of the bull pennant chart pattern has commodity trading price highs & commodity price lows which can be connected by small lines which are parallel, giving it what looks like a small channel - pennant.

The bull pennant chart pattern occurs at halfway point of a bullish upwards commodity trend & after a commodities price breakout a similar move equal to the height of the pennant pole is expected.

Commodity Trading Interpret Bull Pennant Chart Pattern

The bull pennant chart pattern shown above was just a consolidation period as the commodity market gathered momentum to break out & move higher. The bull pennant chart pattern continuation commodity signal was completed when the upper line of this Bull pennant chart pattern was broken to the upside after which the commodity price continued heading upwards.

Trade Bull Pennant Chart Pattern