Do you see a rising wedge or an ascending triangle forming?

11 dic 2019

Note: All of what I claim below is simply the way I perceive the market. I am not certain nor do I suggest you take my advice without first taking into consideration what I have said. Whatever you do, be critical of what everyone claims. Those who claim certainty in the market tend to get hurt the most.


Observations:

It seems like it is developing two different patterns. The first being a rising wedge, which is considered a bearish sign. The second being an ascending triangle, which can be considered a bullish sign.

Notice how I have highlighted the resistance zone with a grey rectangular box. I did this to highlight all of the areas where price action bounced off of (or reversed). It will take a great deal of buying to get above this zone.

If price does break above this grey zone, I think that a further move up will ensue. At the very least, to touch the top of that rising wedge I've drawn out.

But if it breaks below trendline (B), I expect some strong selling off will follow.

I personally believe that the price will continue to consolidate within the ascending triangle I've drawn above. It will take a lot of fighting to break through each extreme edge, especially the resistance zone (A). Therefore, it is suggested to watch carefully when price does reach these two extremes.