Is Monster breaking out of a massive Ascending Triangle?
Key Takeaways
The trendlines of a triangle need to run along at least two swing highs and two swing lows.
Ascending triangles are considered a continuation pattern, as the price will typically breakout of the triangle in the price direction prevailing before the triangle. Although, this won't always occur. A breakout in any direction is noteworthy.
A long trade is taken if the price breaks above the top of the pattern.
A short trade is taken if the price breaks below the lower trendline.
A stop loss is typically placed just outside the pattern on the opposite side from the breakout.
A profit target is calculated by taking the height of the triangle, at its thickest point, and adding or subtracting that to/from the breakout point.
This multi year ascending triangle pattern is similar to a previous one Monster created in approximately 2012.
The RSI is displaying a series of lower highs, meanwhile, the price continues to rise which is indicative of a divergence.
Divergence can occur between the price of an asset and almost any technical or fundamental indicator or data. Though, divergence is typically used by technical traders when the price is moving in the opposite direction of a technical indicator.
Positive divergence signals price could start moving higher soon. It occurs when the price is moving lower but a technical indicator is moving higher or showing bullish signals.
Negative divergence points to lower prices in the future. It occurs when the price is moving higher but a technical indicator is moving lower or showing bearish signals.
Divergence isn't to be relied on exclusively, as it doesn't provide timely trade signals. Divergence can last a long time without a price reversal occurring.
Divergence is not present for all major price reversals, it is only present on some.
FYI, price target of the ascending triangle breakout on a log scale is approximately $118.00 USD.
Additionally, I wouldn't be surprised to see Monster enter the cannabis space this year or early 2021. The company has expressed interest & the U.S is "potentially" going to get some clarity on the SAFE Banking or States Act, only time will tell.
The trendlines of a triangle need to run along at least two swing highs and two swing lows.
Ascending triangles are considered a continuation pattern, as the price will typically breakout of the triangle in the price direction prevailing before the triangle. Although, this won't always occur. A breakout in any direction is noteworthy.
A long trade is taken if the price breaks above the top of the pattern.
A short trade is taken if the price breaks below the lower trendline.
A stop loss is typically placed just outside the pattern on the opposite side from the breakout.
A profit target is calculated by taking the height of the triangle, at its thickest point, and adding or subtracting that to/from the breakout point.
This multi year ascending triangle pattern is similar to a previous one Monster created in approximately 2012.
The RSI is displaying a series of lower highs, meanwhile, the price continues to rise which is indicative of a divergence.
Divergence can occur between the price of an asset and almost any technical or fundamental indicator or data. Though, divergence is typically used by technical traders when the price is moving in the opposite direction of a technical indicator.
Positive divergence signals price could start moving higher soon. It occurs when the price is moving lower but a technical indicator is moving higher or showing bullish signals.
Negative divergence points to lower prices in the future. It occurs when the price is moving higher but a technical indicator is moving lower or showing bearish signals.
Divergence isn't to be relied on exclusively, as it doesn't provide timely trade signals. Divergence can last a long time without a price reversal occurring.
Divergence is not present for all major price reversals, it is only present on some.
FYI, price target of the ascending triangle breakout on a log scale is approximately $118.00 USD.
Additionally, I wouldn't be surprised to see Monster enter the cannabis space this year or early 2021. The company has expressed interest & the U.S is "potentially" going to get some clarity on the SAFE Banking or States Act, only time will tell.
Comment:
This is the same chart on a log scale.
