Commodity Trading Interpret Pennant Pattern Commodity Trading Chart Pattern

Commodities Trade Pennant Pattern Commodity Trading Chart Pattern

There are two types of commodity pennant patterns - bullish pennant chart pattern and bearish pennant chart pattern.

To trade these commodities chart patterns a trader requires to learn about the commodity technical analysis of bull pennant chart pattern and bear pennant trading pattern.

Commodity Trading Analyze Pennant Pattern Commodity Trading 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 price until the commodities price breaks out. In general, the bull pennant chart pattern will not be perfectly flat but it will be sloping and having a slight tilt.

The bull pennant pattern is found within an upwards commodities trend. Bull pennant chart pattern is a continuation chart pattern where the price retraces slightly, bull pennant chart pattern is therefore a slight commodity price retracement with narrow commodity price action that has a slight downward 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 price highs & commodity trading price lows which can be connected together by small lines that 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 break out a similar move equal to the height of the pennant pole is expected.

Commodity Trading Analyze a Bull Pennant Chart Pattern - How Do I Read Pennant Pattern Commodity Trading 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.

Commodity Trade Pennant Pattern Commodities Trading Pattern

This bear pennant chart pattern is found in a downwards trend. The bear pennant chart pattern is a trend continuation pattern where the price retrace slightly with a narrow price action that has a slight upwards tilt. The sell signal is generated when the price penetrates the lower line of the inverted bear pennant chart pattern. Pennant portion of this bear pennant chart pattern has commodity price highs & commodities price lows which can be connected by small lines which are parallel, giving the bear pennant chart pattern the look of a small channel - inverted pennant.

Commodity Trading Analyze a Bear Pennant Chart Pattern - How Do I Read Pennant Pattern Commodity Trading Chart Pattern

The bear pennant pattern above was just a consolidation period for the commodity market trend prior to more selling & resuming of the downward commodities trend. The continuation commodity signal from the bear pennant chart pattern was completed when the lower line of this bear pennant pattern was broken to the downside after which the commodity price moved downwards.

Read Pennant Pattern Commodities Trading Chart Pattern