This P&F chart for POT seems to be giving me conflicting info so I'm hoping I can get some help interpreting it. I am currently short in POT. The P&F pattern is "High Pole Warning". Stockcharts explains the High Pole Warning (HPW) saying:
The high pole warning is given when a chart rises above a previous high by at least 3 boxes but then reverses to give back at least 50 percent of the rise. The reversal implies that the demand that was making the prices rise has given way to supply pressure. The pattern is a warning that lower prices could be seen in the future.
(http://stockcharts.com/school/doku.php?i...#high_pole)
My confusion is that the chart is also showing a a Bullish Price Objective of $41.51 so I'm struggling with why I am getting a Bearish chart pattern (HPW) with a Bullish price objective. I would think that the HPW would more likely confirm a Bearish price target. POT appears to be in a Stage 4 right now which is why I went short.
Thanks in advance...
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