This chart pattern shows a setup for a breakout soon in stocks. Note the triangle pattern on both the 15 and 3 minute charts. While the upward momentum of the past few days would suggest a great likelihood of an upside break-out, the strong downward volume on the 15 minute chart (red line, bottom panel, left chart) suggests weakening price momentum. That's very strong volume pressure downward! The fact that the daily chart is in consolidation, crude oil is higher today, and prices are close to the upper Bollinger Band on the daily charts are also factors suggesting an eventual break to the downside. We'll be ready when it happens!Wednesday, July 30, 2008
Triangle Sets Up for Breakout
This chart pattern shows a setup for a breakout soon in stocks. Note the triangle pattern on both the 15 and 3 minute charts. While the upward momentum of the past few days would suggest a great likelihood of an upside break-out, the strong downward volume on the 15 minute chart (red line, bottom panel, left chart) suggests weakening price momentum. That's very strong volume pressure downward! The fact that the daily chart is in consolidation, crude oil is higher today, and prices are close to the upper Bollinger Band on the daily charts are also factors suggesting an eventual break to the downside. We'll be ready when it happens!
