Cup and Handle Rising wedge

2020년 12월 1일

Intra-year cup and handle pattern..

Long after validation that RW does not interfere or fall from RW complete..

Support at handle low and mid cup which is 143..

WMT has dipped briefly out of the narrowing rising wedge..strong stocks may not fall far but the rising wedge is a bearish pattern most of the time.

A RW is not valid unless bottom trendline is broken and can be a long term pattern..takes at least 3 weeks to form differentiating it from a pennant.. A stock can break up from a rising wedge but the break out is often short lived.

Both trendlines in a RW slope up and converge, or narrow at the apex..They are caused by irrational exuberance and interfer with supply and demand..

NV is high as is OBV. Short interest is low so maybe WMT will not fall any further..

Long term up trend but the 5 MA is well below the last monthly candle. Price is often drawn to the 5 day moving average...It is harder than we think to change a trend as the market is like a huge ship that does not stop on a dime. The market has inertia and and likes to continue doing what it has been doing...it does not mean it will last forever though and ships do eventually stop and turn around...

Be safe/just an observation and not a recommendation

2020년 12월 23일

노트

The bearish rising wedge is winning so far. Price is almost to mid cup so past handle low...Pattern on verge of being invalidated