A structure is forming with both trendlines sloping up and narrowing at the apex. This is called a Rising Wedge and these are considered bearish.
However this one formed after a steep drop down, so one could add a pole and call this a pennant.
The targets for Pennants and Flags are calculated using the pole. The structure at the end of the pole can not go on and on or it becomes "too heavy" for the pole to support. Both come in bullish and bearish forms and they both slope against the prevailing trend but can be flat. A flag should, but not always, takes 3 weeks to form at a minimum and the lines slope parallel to each other. A bull Flag or Pennant often slopes down against the prevailing uptrend and a bear Pennant or Flag often slopes up against the prevailing downtrend. Both are neutral until broken and can break up or down.
There is no such thing as a Bullish Rising Wedge although they do break up sometimes as MSFT has done recently. The bottom line is eventually broken but these can be long term patterns and are not valid until the bottom line is broken. Rising Wedges cause an imbalance between supply and demand (too many buyers within the wedge) and can be caused by FOMO. When price breaks the bottom line there tends to be a sell off to balance supply and demand once again.
Rising wedges are just about impossible for me to establish a target for and they usually do fall but a level of support within the wedge can catch price and stop the fall even if temporarily.
Both Rising wedges and Bear Pennants have the possibility of breaking to the upside especially as of late in this market that feels a bit strange to me. We are all different.
Flags, pennants and rising wedges are neutral until a line is broken.
There is also a cup trying to form but price is a ways from EL for this pattern.
No recommendation.
The sharks usually swim away when the bleeding stops )o:
However this one formed after a steep drop down, so one could add a pole and call this a pennant.
The targets for Pennants and Flags are calculated using the pole. The structure at the end of the pole can not go on and on or it becomes "too heavy" for the pole to support. Both come in bullish and bearish forms and they both slope against the prevailing trend but can be flat. A flag should, but not always, takes 3 weeks to form at a minimum and the lines slope parallel to each other. A bull Flag or Pennant often slopes down against the prevailing uptrend and a bear Pennant or Flag often slopes up against the prevailing downtrend. Both are neutral until broken and can break up or down.
There is no such thing as a Bullish Rising Wedge although they do break up sometimes as MSFT has done recently. The bottom line is eventually broken but these can be long term patterns and are not valid until the bottom line is broken. Rising Wedges cause an imbalance between supply and demand (too many buyers within the wedge) and can be caused by FOMO. When price breaks the bottom line there tends to be a sell off to balance supply and demand once again.
Rising wedges are just about impossible for me to establish a target for and they usually do fall but a level of support within the wedge can catch price and stop the fall even if temporarily.
Both Rising wedges and Bear Pennants have the possibility of breaking to the upside especially as of late in this market that feels a bit strange to me. We are all different.
Flags, pennants and rising wedges are neutral until a line is broken.
There is also a cup trying to form but price is a ways from EL for this pattern.
No recommendation.
The sharks usually swim away when the bleeding stops )o: