Page 154 - THE MARKET WHISPERER

152 PART 5 - Principles O f Technical Analysis
Bear Flag Breakdown, Genzyme – GENZ

In the above example, the stock price of the bio-tech company Genzyme
drops at the start of the day’s trading, and with one five-minute candle
forms the bear flagpole [1]. For the next five candles, it solidifies around
the intraday low, hinting that despite the price drop, it has no intention
of correcting upwards as would normally occur with a sharply dropping
stock. Consolidation around the bottom of the flagpole creates the flag
itself. Breaking down the base of the flag leads, as expected, to continued
lows.

Cup and Handle Formation