Nasdaq appears to be forming a new bullish Pennant pattern on a daily chart. I decided to review the last 30 years of the Nasdaq’s price action to identify similar bullish pennants. My goal was to assess the odds of a bullish continuation if NDX breaks out from this pattern in the coming days / weeks. While doing my research, I noticed that this specific pattern hasn’t occurred too often in the past but when it did, higher prices usually followed (one clear exception was 1997).
2020 — Bullish Pennant; No Break Out Yet
2019 — Very Bullish Action After a Break Out
2009 — Very Bullish Action After a Break Out
2003 — Bullish Action With Lots of Chop After a Break Out
1999 — Bullish Action With Lots of Chop After a Break Out
1997 — Failed Break Out