Today we are going to be looking at Bank of Montreal (BMO) which is presenting a fantastic setup. BMO has been trading lower since mid January. Over the last 2 months we have seen the formation of a very nice descending pennant.
This type of trading pattern offers tends to offer a breakout move to the downside. As the price begins to test and breaks support you there is a good chance that we could see the price drop from the mid $75 to the low $70’s. Although this pattern tends to be high probability you will want to watch for the potential of a quick move to the upside where price may move towards $80.
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