The falling wedge pattern is a bullish reversal pattern that is formed when the price consolidates between two downward sloping trend lines. This pattern is characterized by a narrowing price range as the price approaches the apex of the wedge. The breakout from this pattern is usually to the upside, indicating a potential trend reversal.
In this case, we have identified a falling wedge pattern with a swing target to the top of the wedge around $27. Traders can look for a breakout above the upper trend line of the wedge to confirm the reversal and enter a long position.
Once the breakout occurs, traders can set their target around the top of the wedge at $27. It is important to use proper risk management techniques such as setting a stop loss to protect against potential losses.
Overall, the falling wedge pattern can be a powerful tool for identifying potential trend reversals and trading opportunities. By understanding the pattern and using proper risk management techniques, traders can potentially profit from the expected bullish movement.