In my opinion the false breakout occurred because it broke out early. It seems we are now seeing healthy consolidation. A close below the support zone (about 16.67-17.05) and the continuation pattern will most likely fail.
No worries, this is the time for patience. If it looks like it is going to close over the downtrend line eod than I may add a small amount to the position I already have and hold overnight. Otherwise I will wait for the next test of support.
Time to see how this plays out.
The flag on WEED 5 min was tempting but there were red flags. (pun intended)
Problem 1) Strong resistance was close by.
Problem 2) The flag was rising, this reduces the odds that it will confirm. When a Bull Flag trends down it coils and builds momentum to recover from the weakening trend. It also gives more room to run and cools off the RSI.
Problem 3) The volume was not descending. Volume that is stepping down gives better odds.
The MACD and RSI were confirming that it did not have the umph to break.
I'm a little paranoid about a false kickback. The market gods like to keep things exciting.
What a move over the last couple days. I was concerned that the initially weak breaks from the Symmetrical Triangle were going to weaken the momentum, but the consolidation after the 20.20 rejection provided enough coil to break the ATH.
Anyways, this was a fun chart to follow. It's a great example of why we follow these patterns: coil and momentum is real.