The security is currently exhibiting the formation of a Descending Triangle pattern. It's important to note that historically, a Descending Breakout on the upside tends to have a higher success ratio compared to the downside. Currently, the price is trading below both the Fast and Slow EMA indicators. A potential price breakout on the downside, while the Fast and Slow EMAs are trading upside, would serve as a strong confirmation to consider a short position, and conversely, an upside breakout with this EMA configuration could suggest a long entry.

Additionally, the RSI is closely tracking the price movements. A downside breakout in the price, followed by a corresponding RSI move, would confirm a short trade opportunity, while an upside breakout in both price and RSI might indicate a long position is favorable. Furthermore, on an upside breakout, if the DI+ (Positive Directional Indicator) is trading above DI- (Negative Directional Indicator), with ADX (Average Directional Index) also above DI-, it would provide a robust confirmation to enter a long position, and the opposite configuration could signal a short entry.

Descending Triangle

Oct 24 2023