Falling wedge, near-term reversal or continuation?

27 Ağu 2018

Let me begin by outlining a falling wedge as difficult to spot accurately and is a bullish pattern that starts with a wide top and contracts as prices move lower. In this scenario the price action forms a cone that slopes down as reaction highs/lows converge. The lack of expanding volume may indicate this pattern to be a continuation, but I believe the 2 recent reaction highs (arrows) in conjunction with positive divergence (MACD) are suggesting a bullish breakout fairly soon. If volume continues to decline I'd expect a continuation, otherwise following the trendline breakout, I would expect a brief pullback and corrected support levels around ±8.4k