A descending broadening wedge is a bullish reversal pattern that is formed when a stock's price is contained within a downward sloping wedge, but the width of the wedge is expanding. This indicates that there is increasing buying pressure, even though the price is still falling.
To confirm a descending broadening wedge, the price must break above the upper trendline of the wedge. Once the breakout has occurred, traders will typically enter a long trade with a stop loss placed below the lower trendline of the wedge.
As you can see, the price of
HEKTS
has been contained within a downward sloping wedge since November 2022, but the width of the wedge has been expanding. This indicates that there is increasing buying pressure, even though the price is still falling.
If the price of
HEKTS
breaks above the upper trendline (TRY29) of the wedge, it would be a bullish signal and could lead to a further advance in price. Traders who are bullish on
HEKTS
should look to place their stop losses below the lower trendline of the wedge.
It is important to note that the potential descending broadening wedge pattern in HEKTS is not yet complete. The price needs to break above the upper trendline of the wedge to confirm the pattern. However, the pattern is worth watching, as it could be a sign that
HEKTS
is about to reverse its downtrend.
Broadening wedges can be difficult to trade for a number of reasons:
To confirm a descending broadening wedge, the price must break above the upper trendline of the wedge. Once the breakout has occurred, traders will typically enter a long trade with a stop loss placed below the lower trendline of the wedge.
As you can see, the price of
HEKTS
has been contained within a downward sloping wedge since November 2022, but the width of the wedge has been expanding. This indicates that there is increasing buying pressure, even though the price is still falling. If the price of
HEKTS
breaks above the upper trendline (TRY29) of the wedge, it would be a bullish signal and could lead to a further advance in price. Traders who are bullish on
HEKTS
should look to place their stop losses below the lower trendline of the wedge. It is important to note that the potential descending broadening wedge pattern in HEKTS is not yet complete. The price needs to break above the upper trendline of the wedge to confirm the pattern. However, the pattern is worth watching, as it could be a sign that
HEKTS
is about to reverse its downtrend. Broadening wedges can be difficult to trade for a number of reasons: