After weeks, months really, of talking about the bearish Rising Wedge pattern that has been stalking the risk rally for that long, it is coming out of hiding to try to confirm in the S&P, Dow and Russell 2000.
As can be seen in the chart of the S&P above, any close in the index’s sideways trend will begin to confirm that pattern while a move below 1300 would probably do so safely and a level between the S&P’s 50 and 200 DMAs with a bearish cross of both seeming quite possible right now and good reason to pay attention to that pattern’s target of 1075.
Turning to the Dow without a lift from AAPL, its bearish Rising Wedge is already beginning to confirm for its target of 10400.
Lastly, let’s look at the Russell 2000 considering that this small cap index appears to have chosen its bearish Rising Wedge over its bullish Inverse Head and Shoulders pattern at this point.
Lastly, let’s look at the Russell 2000 considering that this small cap index appears to have chosen its bearish Rising Wedge over its bullish Inverse Head and Shoulders pattern at this point.
Maybe the Russell 2000 uses its little appendage pattern to bounce just above 800, but this potential bounce is unlikely to take the Russell 2000 above 810 and more likely to take this small cap index below its 200 DMA on a Rounding Top with a target of about 750 while its Rising Wedge carries a target of 602.
It is for this sort of possible drop, then, that it makes sense to point out that the Rising Wedge is back.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
The Rising Wedge Is Back
Published 03/09/2012, 12:48 AM
Updated 07/09/2023, 06:31 AM
The Rising Wedge Is Back
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.