Short
Rising Wedge on Valeant Pharma
My last idea described this as an ascending triangle, but I was batshit wrong. It's a rising wedge reversal pattern.
Key features:
When we see that lower line break with high volume, it should move fast to the downside. I haven't put much work into where it'll fall if it does, but I think it'll be enough that a target of $26 will result in a profit.
There may be a rally following the reversal, which may be a good buying opportunity.
Key features:
- A rising trend
- Higher highs, higher lows. Looks inherently bullish
- A contraction of volume
- A decrease in momentum - the confidence in this rally is wavering
When we see that lower line break with high volume, it should move fast to the downside. I haven't put much work into where it'll fall if it does, but I think it'll be enough that a target of $26 will result in a profit.
There may be a rally following the reversal, which may be a good buying opportunity.
Note
Looking for the price to close below ~29.693 to trigger the breakout to the downside. If it does so convincingly, it might bounce back up but I think gravity will take it down soon after.Note
It did it, and I'm seeing some bearish candlestick patterns, if you're into that. Evening star on the 4h chart, three black crows on the 1h.Trade closed manually
Didn't drop quite as much as I expected, but it got darn close.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.