ACHR – will the cab get us to our destination?
As some might know, I did an analysis of CAPITALCOM:ACHR a while ago. It played out, only I forgot to close the idea.. Anyway, we have a new situation now. Direction is the same, pattern has changed. Looking at CAPITALCOM:ACHR on the 4H chart, it is clearly trending down the last month. But a pattern is appearing, that of a Falling Wedge . This is a Bullish pattern. Sometimes this is confused with a continuation pattern, indicating the downturn is continuing. However, we have some strong green candles, telling us there are buyers out there. Volume on green candles are generally higher than the red candles. This indicates sellers are running out of gas. A Falling Wedge is considered a strong Buy signal. And, falling wedges often follows a sudden reversal of an uptrend, which can clearly be argued in this case. Entry is usually at the break of the upper channel line, but this is discretionary. Target is (previous) high inside the pattern (€5.43).
