It is obviously impossible to predict the future but should this pattern confirm it would mark a major top in the current bull market and possibly signal its end.įinally, and as I mentioned above, all technical patterns have a risk of failure. It’s important to note that the 1820 area would only be the “initial” downside target as most confirmed reversals out of rising wedge patterns lead to subsequent price moves that are lower than the pattern bottom. However, should this happen the initial measured move target forecasts a possible return to the 1820 area. The height of the pattern is measured by subtracting the initial low from the initial high and in this case it measures roughly 260 points.Īt this point it is too soon to declare that the S&P is headed below the lower trend line. Note that there is still a bit more wiggle room for the pattern to evolve, but the window is narrowing. Following last week’s unsuccessful attempt to push through the 2100 level, the price is now hugging the lower trendline and threatening to break down from the pattern. The pattern confirmation grew a little stronger with the early March bounce off the lower rising trendline (point #5). The initial point of this wedge pattern was at the October 2014 correction low, although the pattern itself could only be defined after the second higher high was established in late February (point #4 on the chart below). Here is a graphical representation of the rising wedge pattern from To learn more about this pattern and its many manifestations and implications, please see this excellent overview at ToTheTick (S&P 500 Rising Wedge Pattern Forming? I will also discuss the implications for future price direction.Ī rising wedge is a bearish continuation or reversal pattern, where the price movement happens in a series of higher highs and higher lows confined within two rising trendlines that converge toward an apex. I will let the above serve as a disclaimer of sorts and proceed to tell you why I think the current price structure of the S&P 500 looks to me an awful lot like a seven-month bearish rising wedge pattern. Finally, it doesn’t help that the “true” pattern is only apparent in hindsight. The order involves the engineering, procurement, and construction (L-EPC) of a Technical Ammonium Nitrate (TAN) plant and Weak Nitric Acid (WNA) plant in Rajasthan, India.Additionally, even “textbook” patterns can fail, often in direct proportion to how visible they are and how much attention they receive. L&T Energy Hydrocarbon (LTEH), a business unit of Larsen & Toubro (L&T), has won a significant order for its hydrocarbon business under its AdVENT vertical. A year ago, Hindalco Industries had planned to spend $7.9 billion between FY23 and FY27 on capex, and now in analyst call they reduced this guidance to only $4.5 billion on Novelis headwinds.ģ. Additionally, Tata Power will issue Rs 1.5 billion worth of non-convertible debentures to finance the upgrade.Ģ. The Asian Development Bank has granted $2 million to Tata Power to improve power distribution in Delhi. Please consult your financial advisor before taking any financial decision.ġ. You may add this to your watchlist to understand further price action.ĭisclaimer: This analysis is purely for educational purposes and does not contain any recommendations. It is often considered a bearish chart pattern that indicates a potential breakout to the downside The Rising Wedge in the downtrend indicates a continuation of the previous trend. The stock is following a Rising Wedge Pattern on a daily time frame.
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