BLOOM is potentially forming a Bullish Bat harmonic pattern. The recent breakdown from 5.5 support also gives it a higher probability of completing the bullish pattern. The Potential Reversal Zone (PRZ) is around 4.35 (4.32~4.6 range) which is near the major support at 4.00.
So far, the 8-month uptrend support line remains intact which may also act as bounce point in the short term. However, a breakdown from this trendline will also further support the completion of the Bullish Bat harmonic pattern.
Trading Plan
- Wait for the Bullish Bat harmonic pattern completion and only take position on a sign of a reversal (candlestick reversal patterns) or bottoming out pattern around the PRZ area. Stop-loss should be a few points below 4.32 or on breakdown from major support.
