The trade idea is in play and with price showing support above R6.20
The risk reward is great at this point as we target the R8 level initially. A successful break above would be a good level to add to the position.
A daily close below R5.40 negates the idea.
A falling wedge is a bullish chart pattern that signals a potential trend reversal to the upside. It is formed when the price action of an asset is moving in an overall bearish trend before the price action corrects higher. Within this pullback, two converging trend lines are drawn. The consolidation part ends when the price action bursts through the upper trend line or wedge’s resistance.
The risk reward is great at this point as we target the R8 level initially. A successful break above would be a good level to add to the position.
A daily close below R5.40 negates the idea.
A falling wedge is a bullish chart pattern that signals a potential trend reversal to the upside. It is formed when the price action of an asset is moving in an overall bearish trend before the price action corrects higher. Within this pullback, two converging trend lines are drawn. The consolidation part ends when the price action bursts through the upper trend line or wedge’s resistance.