Be cautious
The triangle formation that is appearing in the chart, is described in many of the previous ideas as a possible breakout pattern (pennant or flag). I'd be a little more cautious here.
John J. Murphy described the formation like this:
- "The descending triangle has a declining upper line and a flat lower line. Since sellers are more aggressive than buyers, this is usually a bearish pattern."
- "The Descending Triangle as a Top - In the case, a close below the flat lower line would signal a major trend reversal to the downside."
Also important "The length of the pattern can range from a few weeks to many months, with the average pattern lasting from 1-3 months.". The current formation started forming in May.
Take a look at the volume within the next few days and be cautious with your long positions. I'm not saying it's not breaking out, but for me things are not looking clear!
John J. Murphy described the formation like this:
- "The descending triangle has a declining upper line and a flat lower line. Since sellers are more aggressive than buyers, this is usually a bearish pattern."
- "The Descending Triangle as a Top - In the case, a close below the flat lower line would signal a major trend reversal to the downside."
Also important "The length of the pattern can range from a few weeks to many months, with the average pattern lasting from 1-3 months.". The current formation started forming in May.
Take a look at the volume within the next few days and be cautious with your long positions. I'm not saying it's not breaking out, but for me things are not looking clear!
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