It’s an unlikely upside scenario, but confirms at a seemingly ridiculous 13692 for an even more outlandish target of 14673 and that would be an all-time high with its downside scenario confirming 12711 for the aforementioned target of 12083.Īfter the dissection of the Dow’s bearish Broadening Top, it appears more likely that it too will do as its bearish brethren have done before it which equates to a 200-DMA-crossing drop. Liquidity slosh is always possible to cause this pattern to do something unique than what it normally does and that means treating both sides even though this pattern breaks to the downside nine times out of ten. One should not assume that the Dow’s Broadening Top will do as it expected or as its prior Broadening Tops has done with the potential for the promise of some liquidity. The falling wedge chart pattern is a recognisable price move that is formed when a market consolidates between two converging support and resistance lines. Not to say the multi month Rising Wedge that delivers a 10405 target for a potential decline of 22% and another correction in the many corrections and rallies of the longer 2-year sideways trend. There is a valid reason to know that such a resolution will not require much more sideways trading before it displays what could be a 10% drop in the big Broadening Top alone. Pattern trading is among the popular analytical trading where traders use the price pattern to predict the next action. If the comparison carries on into resolution, it is apparent that it will be a bearish and not a bullish resolution.Ĭonsider the current Broadening Top is more compact than the prior one, the reason for drawing the intermediate-term trend-lines differs in the second chart. The first small Broadening Top resembles the current one in relation to its Rising Wedge at that time and suggests there may be some other sideways trades ahead prior to the resolution.
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