Similar to Falling Wedges, Falling Channels can be problematic on an upside breakout due to the immediate resistance inside the Channel.
BIDU broke out this Channel last week, got to the top of the Kumo (Cloud), then reversed and closed yesterday back inside the Channel.
There was a gap left in the chart at 122.97, prior to the breakout. Yesterday's low was 123.00, al-lmost filling that gap. If BIDU had bounced off the 123.00 low and CLOSED back above the top trendline of the Channel, it would have looked alright, but the CLOSE back inside of it presented The Bulls with the dreaded "Ye Olde Knuckle-biter" going home.
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