the Canadian composite index - will keep selling - 2020-03-12Pattern: Triangle pattern
The triangle pattern is a specific figure formed on the price chart, typically identified when the tops and the bottoms of the price action are moving toward each other like the sides of a triangle. When the upper and the lower level of a triangle interact, traders expect an eventual breakout from the triangle. As such, many breakout traders use triangle formations for identifying breakout entry points.
Analyze ;
Yes, the composite index Canadian is building a triangle pattern, you can notice when you reverse the chart, I like to do it because it gives you a better understanding of the chart sometime. We already reach point fifth of the wave so now idea is the market will sell until they break the triangle but we can see we have a support level before reach the second red line 8093. For now, it's possible for the market to bounce on the first red line that means 14000 and go back down or bounce and change the direction. but there is a high probability the market will go down and reach the second red line.
The recommendation that will be purchasing a put option to protect their investment.
