Price is returned to test the 20 day moving average and there is a an evident rising wedge which has formed.
RSI & MACD bearish divergence
I would be cautious to the long side here especially if bulls can't hang onto the R74 level.
Sure, here is the explanation without number annotations:
The Rising Wedge is a pattern used in technical analysis to predict a likely bearish reversal. It is characterized by a narrowing range of price with higher highs and higher lows, both of which are enclosed by upward sloping trendlines. Here are the key characteristics of a rising wedge pattern:
- Upward Trend: The pattern typically forms during an upward price movement.
- Converging Trendlines: Both the support and resistance trendlines slope upwards, but they converge as the pattern matures.
- Volume: A declining volume accompanying the formation often strengthens the pattern's bearish signal.
- Breakout: Confirmation of the pattern occurs when the price breaks below the lower support trendline, signaling a potential bearish reversal.
The rising wedge is generally considered a bearish pattern because it signals that the buying momentum is slowing down. The narrowing price range and declining volume suggest that the buyers are losing control, making it more likely for the price to break downwards.
RSI & MACD bearish divergence
I would be cautious to the long side here especially if bulls can't hang onto the R74 level.
Sure, here is the explanation without number annotations:
The Rising Wedge is a pattern used in technical analysis to predict a likely bearish reversal. It is characterized by a narrowing range of price with higher highs and higher lows, both of which are enclosed by upward sloping trendlines. Here are the key characteristics of a rising wedge pattern:
- Upward Trend: The pattern typically forms during an upward price movement.
- Converging Trendlines: Both the support and resistance trendlines slope upwards, but they converge as the pattern matures.
- Volume: A declining volume accompanying the formation often strengthens the pattern's bearish signal.
- Breakout: Confirmation of the pattern occurs when the price breaks below the lower support trendline, signaling a potential bearish reversal.
The rising wedge is generally considered a bearish pattern because it signals that the buying momentum is slowing down. The narrowing price range and declining volume suggest that the buyers are losing control, making it more likely for the price to break downwards.