Trading Accenture Stock Following a Rising Wedge Breakout

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Pattern

Accenture (ACN) stock has recently formed a noteworthy technical pattern known as a rising wedge. This pattern is characterized by a series of higher highs and higher lows, with the price action converging toward a single point, forming a wedge-like shape. Typically, a rising wedge is considered a bearish pattern, suggesting that the uptrend may be losing steam and a potential reversal could be on the horizon.
However, in the case of Accenture, the stock has recently broken out above the upper trendline of the rising wedge. This breakout could signify a continuation of the previous uptrend rather than a reversal.

Key Levels:

The key level to watch following this breakout is the top of the wedge, which falls around the $289-$290 price range. If Accenture's stock price can sustain above this level, it would confirm the bullish breakout and suggest potential for further upside.
On the downside, the bottom of the wedge, around the $280 level, now becomes a crucial support level to monitor. If the stock were to fall back below this level, it could negate the bullish implications of the breakout and suggest a potential false breakout.

Price Action:

The price action leading up to and following the breakout has been bullish. Accenture's stock price has been making a series of higher highs and higher lows, indicating strong upward momentum. The breakout itself was decisive, with the stock gapping up and closing well above the upper trendline of the wedge.

Relative Strength Index (RSI) has been trending upward, suggesting that bullish momentum is building. However, the RSI is approaching overbought territory, which could signal a potential short-term pullback or consolidation.