Ascending Triangle Confirmation: - There are 2 swing highs touching the horizontal line - There are 2 swing lows touching the other triangle line - Before the triangle, the stock was trending with strong volumes - In the triangle, the stock is getting consolidated with contracted volumes
Interpretation: - Ascending Triangle is a continuation pattern - Here it is getting created after an uptrend - If it breaks out from the triangle with high volume, it can continue the uptrend with target price equal to horizontal line + the base of the triangle - If a false breakout occurs, with low volume, it can breakdown and downside can be of similar magnitude
Conclusion: Wait for the stock to move out of Triangle to see which breakout occurs. (positive/false) As it is a trend continuation pattern, It should be positive breakout ideally as per the chart.
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