What is a bearish pennant pattern?
A bearish pennant pattern is a continuation pattern. That means it will likely signal further weakness in a given stock.
volume The volume should be low when the pennant is being formed. When the pennant breaks out, however, you want to see a spike in volume. Target The target for a bearish pennant pattern is found by subtracting the top of the highest point to the bottom of the lowest point and subtracting that from support. The highest point is $106, the lowest is $97. So we would expect it to go $9 points lower than support which was $101. That gave us a target of $92. This stock hit $92 consolidated and then broke down even lower. Trading the pattern A professional trader can sell during the breakout and have a stop set above support. Other Chart Patterns
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