on weekly chart has a nice descending triangle
. Any chart pattern is not valid until it is in the middle of developing. Current situation can mean a continuation of the long term bullish trend
, or reversal. Until price stays inside this triangle it is hard to say what is going to happen next. Upper triangle's line is now playing an important part.
Technical chart patterns can be tricky sometimes and as a traders we are enforcing our own believes into the market. As example I can draw the same situation like this:
where Head&Shoulders pattern can be seen. So, until the chart pattern is not complete it is dangerous to judge the market direction.
I am very interested in Traders opinion on this chart.