The Security is forming a Symmetric Triangle on a Daily time frame. Symmetric triangle is a pattern in which the Resistance line is falling and the Support line is rising. It has been observed that steeper the line breakout is seen in that direction. Usually volume during the pattern is Irrelevant; after breakout the volume increases.

The security has just closed below the EMA forming a Doji which suggests halt in the direction, we need to wait for a day to confirm in which direction the move is going to continue; if the next day closes below the Doji low we can expect the security to continue falling, if the next day closing is above doji high we can expect the move to be on the upside.

Usually during formation of patterns we always avoid taking position due to many whipsaws and it is better to wait for proper breakout for direction move.

Only Risky traders can take position if the above condition is fulfilled, others can wait for the breakout.

ACWI

Jan 07 2022

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