Are you ready to make smarter investment decisions in the stock market? As experts in Wall Street trading, we at Extreme Investor Network have valuable insights to share with you. Today, we want to discuss the formation of an ascending triangle pattern and what it means for potential market movements.
The recent tight consolidation pattern in the market can be viewed in two ways – either as a rectangle or as a rectangle with a developing ascending triangle pattern inside. If the ascending triangle pattern is to play out, there is the potential for a sharp upside breakout above 2,532. Keep a close eye on the pattern as a breakout or failure is likely to occur within the next five days when the two boundary lines of the pattern intersect.
In terms of market direction, the bias remains to the upside as an uptrend is present on multiple time frames. However, it’s important to watch for signs of weakness. The 50-Day MA is a key price indicator for the trend, and a failure to hold as support could be a warning sign of a potential reversal.
With the price range contracting over the past month, there is the potential for a sharp breakout in the current price range. A decisive rally above 2,532 could send the market towards the next target at 2,566, which is the 161.8% extended target of a measured move from the 2022 lows.
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