Patience.
RIO was moving right along and broke up from a wide channel down (top channel line is blue). If price goes back under this blue dashed line, it becomes resistance again so be safe. I am just watching RIO for now until 2 bearish components correct in this chart.
1. Folks appear to have gotten overly excited and a bearish Rising Wedge (RW) has formed.
It is not a large one but it is there. Risky to enter until a correction with a resumption of the uptrend.
2. Also a divergence is noted between price and RSI. They do not match.
It is not unusual for a RW to also have a Divergence. (I use RSI but there are other oscillators one can use to look for divergence).
Rising wedges are not valid util price breaks the bottom trendline and price can even break Up from this pattern. In the end, Rising Wedges are bearish and interrupt supply and demand at that level.
This will eventually correct with a pull back sometimes it may take a bit to pull back and correct. I do not stay inside a rising wedge for long but we are all different.
T1 is in larger type than T2 or T3 which is smallest type. T2 is there in T1 is passed.
Price would need to break UP from the RW to meet these targets. If a security is in a high momentum phase, it may barely break the bottom trendline, or it may continue up and come back later on to bust the bottom trendline of a RW.
No recommendation.
RIO was moving right along and broke up from a wide channel down (top channel line is blue). If price goes back under this blue dashed line, it becomes resistance again so be safe. I am just watching RIO for now until 2 bearish components correct in this chart.
1. Folks appear to have gotten overly excited and a bearish Rising Wedge (RW) has formed.
It is not a large one but it is there. Risky to enter until a correction with a resumption of the uptrend.
2. Also a divergence is noted between price and RSI. They do not match.
It is not unusual for a RW to also have a Divergence. (I use RSI but there are other oscillators one can use to look for divergence).
Rising wedges are not valid util price breaks the bottom trendline and price can even break Up from this pattern. In the end, Rising Wedges are bearish and interrupt supply and demand at that level.
This will eventually correct with a pull back sometimes it may take a bit to pull back and correct. I do not stay inside a rising wedge for long but we are all different.
T1 is in larger type than T2 or T3 which is smallest type. T2 is there in T1 is passed.
Price would need to break UP from the RW to meet these targets. If a security is in a high momentum phase, it may barely break the bottom trendline, or it may continue up and come back later on to bust the bottom trendline of a RW.
No recommendation.