consolidating within a 'falling wedge' pattern that was identified
last week. It is a consolidation pattern, which means the trend
preceding the consolidation should resume after the break out. Though
triangles can be quite fickle in predicting trends, a 'falling wedge'
- which is a triangle with two of its sides pointing downwards – has
bullish implications.
The upward break out from a 'falling wedge' can be a slow, gradual
break that may start off like a sideways movement before it picks up
speed. There is supporting evidence for an upward break out from the
technical indicators. Three of them are showing positive divergences
by touching higher bottoms (marked by blue arrows), though all four
are still looking bearish.
The MACD is falling below its signal line in negative territory. The
ROC has crossed above its 10 day MA and about to enter the positive
zone. The RSI bounced up from the edge of its oversold zone, but
hasn't crossed above its 50% level. The slow stochastic is trying to
emerge from its oversold zone.
Read more at:
--
Independent Investor Handbook
http://tinyurl.com/3octm2r
Ultimate Technical Analysis Handbook
http://tinyurl.com/yej8kem
How to Use Bar Patterns to Spot Trade Setups
http://tinyurl.com/yhszv6t
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