Double Bobble Upwards Breakout as a Rising Wedge (Pink Scenario), Price Channel (Green Scenario) or Rising Megaphone (Purple Scenario)
ES is forming a double bobble as it tries to break out upwards from the big head and shoulders on the daily and weekly charts.
An upwards breakout from the second bobble–meaning past the existing all-time high–is a set-up for a melt-up. That set-up would be killed if ES takes out the low of the first bobble. (After breakout, the set-up would be killed if ES takes out the low of the second bobble.)
If the double bobble is going to break out upwards, it makes a difference what form it takes before that breakout. A rising wedge (pink scenario) is the most limiting set-up with the smallest potential move unless the rising wedge breaks out upwards.
Here’s an example of a double bobble rising wedge set-up that broke out upwards:
Double Bobble Rising Wedge Upwards Breakout
A double bobble price channel (red on top chart, green scenario) would provide the best opportunity for the biggest, fastest move up. An upwards breakout from a price channel would be a set-up for a blow-off top.
A rising megaphone set-up (purple scenario) would typically lead into a bigger move than a rising wedge set-up but a smaller move than a price channel set-up. But it could lead into only a very small move up or a prolonged move up that keeps extending in between sharp retraces.