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- Dow Jones is forming a falling wedge in its daily line chart.
- Falling Wedge is a bullish pattern.
- There are two possibilities
- 1st one a reversal from 9800 levels.
- 2nd one a reversal after a false break down of the bottom trend line below 9800.
- Falling wedge being a bullish pattern and is well formed in the daily chart i am expecting a reversal.
San,
ReplyDeleteThis is an important chart. I also feel we have reached the bottom for S&P ( 1040 ). Maybe till 990 is possible. You should post this in seekingalpha.com. Good work...
-- gd
@Golfdude
ReplyDeleteThanks for suggesting the link. I saw your 2 year chart in your blog. You have done a nice study. Keep it up
Doesn't downtrend have to be at least 3 months old?
ReplyDeletehttp://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:falling_wedge
@Keith
ReplyDeleteThat is the theory. But doesn't have to be that way always. Have seen a lot of falling wedges that has taken less time to form and has given good results.
What i would look for is two distinct touches on both the trend lines. And we have that.
Let me show you an example from nifty.
http://niftychartsandpatterns.blogspot.com/2010/05/falling-wedge-in-nifty.html
Thank you