EWT trade ideas
EWT - bullish Taiwan I might be being a bit over-optimistic here as always you can find a count that fits a more bearish direction if you look for it. I like this one however for now but I am still curious if, when and where we are going to see a decent wave 2 correction/pullback before it continues higher. Since the "crash" in February, it, along with many other indexes has been heading up in an almost straight line......
"iShares MSCI Taiwan ETF forms bearish "Symmetrical Continuation
Detected a "Symmetrical Continuation Triangle (Bearish)" chart pattern formed on iShares MSCI Taiwan ETF (EWT:NYSE). This bearish signal indicates that the stock price may fall from the close of $13.21 to the range of $12.70 - $12.80. The pattern formed over 15 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price has broken downward out of a consolidation period, suggesting a continuation of the prior downtrend. A Symmetrical Continuation Triangle (Bearish) shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks down below the lower trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior downtrend.
This bearish pattern can be seen on the following chart."