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

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