Triangle morphs into falling wedge retains pennant shape
The triangle btcusd’s priceaction has been in for awhile is now appearing to morph into a falling wedge on the 1 day chart. We are looking at the weekly chart though to show how that falling wedge is also part of a bigger bull pennant. I made the pole of the pennant lavender and the wedge yellow. The red line represents the neckline of a 1 day chart head and shoulders pattern. The wedge has yet to be fully validated yet..still looking for one more touch of one of the wedges trendline on the daily chart to confirm but odds are good it will. Another reason i chose to show the weekly chart here instead of the daily chart is to show you that the 50 weekly ma (in orange) is still providing powerful support. If it continues to hold such support then we will indeed break up out o the pennant/wedge. I placed the measured moves of such a breakout at the convergence of the red neckline of the potential head and shoulders pattern and the yellow top trendline of the wedge. My presumption is that if the orange weekly 50ma maintains support it will likely help push the price out of the pennant/wedge right at that convergence point or possibly a few candles sooner to get ahead of the herd. If it does break out at that convergence point I have put a dotted line to chart the measured breakout move target of both the wedge and the pennant right at the point of convergence. The dotted purple line leads to the pennant’s breakout target. The dotted yellow line leads tot he projected falling wedge breakout target. If we breakout before the point of the converge the measured move targets for each will of course then be slightly higher. As always we must be prepared however if it does break below the red head and shoulder neckline. I wouldn’t be convinced it’s going to break down however unless we were to lip the weekly 50ma to solidified resistance first. Keeping this idea neutral for now until I see a confirmed break one way or the other. *not financial advice*
Comment:
The dotted white measured move line I should divulge is the target for the breakout of the green channel we broke out of 7 weeks ago. Only the top trendline of the channel is shown here. It’s target is very similar to the bull pennants target giving us a bit of bullish confluence to slightly increase the bullish outcomes probability.
Comment:
The target on this idea has been hit. However, since the breakout of the wedge/pennant happened early than anticipated the dotted yellow lines target is actually higher (around 53690). I still am confident it will get hit though
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The revised wedge target of 53960 has now been hit. The next target is 56k and then the descending channel breakout target of 64k. After that is the revised pennant target at around 68k and lastly beyond that the monthly bull flag target at 97k
Comment:
56k target now hit as well!