Descending Broadening Wedge Target 7550-7600
Ok, so here is what I think might play out. The bullish descending broadening wedge in PINK shows us that we should expect a target of around 7550-7600. This also happens to nicely coincide with the long term PURPLE resistance down trend line.
Since the initial breakout of the bullish descending broadening wedge we have been trading within the GREEN uptrend channel. We currently find ourselves within a possible symmetrical triangle shown in ORANGE. We can now use the height of this triangle to determine a target based on a break to either the upside or downside. If we break to the upside we get a target of around 7400. If we break to the downside we get a target of 5930 which is right back down to the bottom again.
Regardless of whether the orange symmetrical triangle plays out; we can also determine targets based on the height of the green uptrend channel. A break to the upside of the channel sees us travel to 7600 which is in line with our overall target based on the descending wedge pattern. Whereas a break to the downside takes us down to 5950ish which is in line with our orange symmetrical triangle break down.
So how will this play out?
Considering the PINK bullish descending triangle is the dominate pattern; I say it is more likely that we see a break up out of the green channel which propels us to our target of 7600 and everything works out nicely as expected. This could occur very soon as if the orange symmetrical triangle pattern holds and we break to the upside, this should give us the push to break out of the green uptrend channel which in turn will give us the push needed to reach our overall target.
Considering shorts are still massively high, and longs have a great deal of room to move - then this is further support of a bullish bias. Given this knowledge I am therefore bullish biased at the moment.
Since the initial breakout of the bullish descending broadening wedge we have been trading within the GREEN uptrend channel. We currently find ourselves within a possible symmetrical triangle shown in ORANGE. We can now use the height of this triangle to determine a target based on a break to either the upside or downside. If we break to the upside we get a target of around 7400. If we break to the downside we get a target of 5930 which is right back down to the bottom again.
Regardless of whether the orange symmetrical triangle plays out; we can also determine targets based on the height of the green uptrend channel. A break to the upside of the channel sees us travel to 7600 which is in line with our overall target based on the descending wedge pattern. Whereas a break to the downside takes us down to 5950ish which is in line with our orange symmetrical triangle break down.
So how will this play out?
Considering the PINK bullish descending triangle is the dominate pattern; I say it is more likely that we see a break up out of the green channel which propels us to our target of 7600 and everything works out nicely as expected. This could occur very soon as if the orange symmetrical triangle pattern holds and we break to the upside, this should give us the push to break out of the green uptrend channel which in turn will give us the push needed to reach our overall target.
Considering shorts are still massively high, and longs have a great deal of room to move - then this is further support of a bullish bias. Given this knowledge I am therefore bullish biased at the moment.
Note
The resistance of the orange symmetrical triangle is forming a bull flag on the hourly chart.Note
Note
Edit: 'Is forming a bull flag within it shown in pink'Note
Bull flag didn't work out. Seems it was more a bull trap now turned bear trap as we test the lower support of the orange symmetrical triangle. Never the less, as we are now getting very close to the apex, I am hoping to see a break out to the upside of the symmetrical triangle sometime within the next 12 hours. Note
We have now had fake outs to both sides of the symmetrical triangle and are super close to the apex. I am hoping to see a huge pump to the upside within the next couple hours.Note
Ok, so the symmetrical triangle didn't play out, but we got something better! We have now formed an ascending triangle. Whilst symmetrical triangles can take us either way, ascending triangles are almost always bullish. Based on the height of the triangle we can work out our target; in this case around 7300. Now don't get me wrong, I am not to worried about patterns within the green channel. I am just looking for a pattern that tells us when we might finally break to the upside so we can go about hitting our overall target (based on the pink dominating descending broadening wedge) which is 7550-7600.
Note
Broke out of the ascending triangle to the upside as expected. Have completed a quick test of the top of the channel. It won't be long now until we break out to the -upside of the channel. We should then reach our target of 7550-7600 within the next couple days. Once the target is reached I would advise to take profit as there is a very good chance we will then head back down to 5980 for one last time. Note
50 MA about to cross over 200 MA on the 4 hour, this might provide a nice boost towards our target.Note
The 50 MA cross over the 200 MA has helped us as expected. Nearing our target to take profit. Once this occurs I will be re-assessing the situation, however there is a good chance we will retrace back to 5980 levels before our bull run up to 11K starts. This would represent an excellent short opportunity. Trade closed: target reached
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