Pattern play: Plains GP Holdings LP

Upside breakout from a bullish pennant.

Uptrend 1

Plains GP Holdings LP (PAGP), a provider of storage, transportation and marketing of crude oil, broke out to the upside of a short-term bullish pennant pattern that began to form in early-December. The simple moving averages (SMAs) just turned bullish, as the 20-day SMA is above the 50-day SMA and the 50-day SMA just crossed above the 200-day SMA. If price can manage to stay above the upper trendline of the pattern, then price will likely advance towards the 9.80 and 10.50 resistance levels. On the other hand, if price falls below the upper trendline, traders should look to 8.55 for support. If price is not able to bounce off of 8.55 and falls below it, it would be a bearish signal that could send price back to 7.80.       

Source: GAIN Capital, TradingView

More from Technical Analysis

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.