There is also a Narrowing Rising Wedge in this chart
A rising wedge can be a very long term pattern that is caused by too much buying without healthy pull backs. "Irrational Exuberance"
In the end, there is a shortage of buyers and if the pattern breaks the bottom trendline, the pattern is valid. It is not valid until then
Shorties (Those who go short) love this pattern as it once the stock breaks that bottom trendline, fate takes over. The short is increasing on this one.
Often the RW causes issues during a pull back due to limited buyers left, but I have also noticed it happens at earnings as well. The company will beat, yet a deep pull back ensues despite the earnings beat
I do not go short, but I do respect their opinion and the reason I look at short interest is to find sentiment on the stock.
A RW can fall a very short way, or just have a candle tail dip out and be done, or it can fall to the angle of where the RW started. IE, draw a straight line from bottom line of RW. I drew a small orane line to demonstrate how far JAZZ could fall. There is a gap above this though that would probably provide support. Seldom does a strong stock fall this far, but an example is HRC which can be found in my posts with a demo of the complete fall from a RW
I am not saying JAZZ will fall much at all. Just saying keep your eye on bottom trendline of RW (O:
Negative volume (NV) is high on this one showing there is still large player interest as they buy on down days
There is also a gap below price but looks like it has been filled
I am choosing long on this one with caution encouraged
Not a recommendation
Be safe
A rising wedge can be a very long term pattern that is caused by too much buying without healthy pull backs. "Irrational Exuberance"
In the end, there is a shortage of buyers and if the pattern breaks the bottom trendline, the pattern is valid. It is not valid until then
Shorties (Those who go short) love this pattern as it once the stock breaks that bottom trendline, fate takes over. The short is increasing on this one.
Often the RW causes issues during a pull back due to limited buyers left, but I have also noticed it happens at earnings as well. The company will beat, yet a deep pull back ensues despite the earnings beat
I do not go short, but I do respect their opinion and the reason I look at short interest is to find sentiment on the stock.
A RW can fall a very short way, or just have a candle tail dip out and be done, or it can fall to the angle of where the RW started. IE, draw a straight line from bottom line of RW. I drew a small orane line to demonstrate how far JAZZ could fall. There is a gap above this though that would probably provide support. Seldom does a strong stock fall this far, but an example is HRC which can be found in my posts with a demo of the complete fall from a RW
I am not saying JAZZ will fall much at all. Just saying keep your eye on bottom trendline of RW (O:
Negative volume (NV) is high on this one showing there is still large player interest as they buy on down days
There is also a gap below price but looks like it has been filled
I am choosing long on this one with caution encouraged
Not a recommendation
Be safe