Could the downtrend play out to the end of the wedge?

16 thg 8, 2018

If the downtrend played out to the bottom of the wedge that has been created, it could possibly look like this. Of course anything can happen, but so far this broad pattern has not been invalidated. Obviously, the further into the tightening wedge that the price moves, the more likely triggers (like bullish or bearish news) could create the momentum to break out, up or down. So the further the movement into the pattern, the more likely it gets to be invalidated. The long support line from the area where the 2017 bull market roughly began, could be a likely area (5400 or so) for the end of this pattern, if it is not invalidated before then.