Expanding Triangle Pattern Analysis – DIXON (India)Pattern Formation Overview:
The uploaded chart of DIXON suggests the formation of an Expanding Triangle (Broadening Formation), a pattern characterized by higher highs and lower lows, reflecting increasing volatility. This pattern typically forms in a corrective or consolidation phase before a decisive breakout.
Key Characteristics of the Expanding Triangle in DIXON:
Expanding Swings:
The price is making higher highs (point 2 & 4) and lower lows (point 1 & 3).
This widening structure indicates an increasing level of price instability.
Current Market Position:
Wave 4 has recently completed at a resistance zone.
Price is now starting the downward leg (Wave 5) toward the expected target of 12,700-12,400.
Bearish Breakdown Expected:
The next move is projected to be a strong downside move as price follows the expanding triangle structure.
The target is near 12,700, aligning with Fibonacci extensions.
If selling pressure increases, the 2.618 Fibonacci extension (~12,400) could be the final stopping point.
Key Support & Resistance Levels:
Resistance Zone (Wave 4 Peak): 13,500-13,600
If price breaks above this level, the bearish view may be invalidated.
Support Zone (Target Levels):
12,700 (Primary Target)
12,400 (Extended Target) based on Fibonacci confluences.
Confirmation Factors:
A break below 13,200 will confirm the bearish move.
Volume should increase on the breakdown for added conviction.
Conclusion:
Expanding Triangle suggests higher volatility and a final bearish move.
Watch for breakdown confirmation below 13,200.
The expected target is around 12,700, with an extended move possible to 12,400.
Disclaimer
⚠️ This analysis is for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or trade execution strategies. Trading involves significant risk, and you should conduct your own research or consult a financial advisor before making any decisions. Past performance does not guarantee future results. Trade at your own risk.
