$GM - potential single bust ascending triangle play
Price broke down from ascending triangle to approximately 10% below the lower trend line. The price retested previous low today without further breaking down. This is encouraging, as this could be seen as buyers are willing to come in as soon as the price visit below $50.
Since the price did not break down further than 10% from the lower trend line, we can expect the price to travel back into the triangle and head towards $64 area with $58.28 acting as a tough resistance area. Single bust pattern states that after breaking down from the triangle the price should not travel more than %10 before reversing and eventually travel back into the triangle for a break out.
However, if we break below $49, we can expect the price to reach $47 before finding any support.
Target 1 - $58.28
Target 2 - $64
Risk - Breaking down to $47
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How to read my charts?
- Matching color trend lines shows the pattern. Sometimes a chart can have multiple patterns. Each pattern will have matching color trend lines.
- The yellow horizontal lines shows support and resistance areas.
- Fib lines also shows support and resistance areas.
- The dotted white lines shows price projection for breakout or breakdown target.
Disclaimer: Do your own DD. Not an investment advice.
Since the price did not break down further than 10% from the lower trend line, we can expect the price to travel back into the triangle and head towards $64 area with $58.28 acting as a tough resistance area. Single bust pattern states that after breaking down from the triangle the price should not travel more than %10 before reversing and eventually travel back into the triangle for a break out.
However, if we break below $49, we can expect the price to reach $47 before finding any support.
Target 1 - $58.28
Target 2 - $64
Risk - Breaking down to $47
———————————————————
How to read my charts?
- Matching color trend lines shows the pattern. Sometimes a chart can have multiple patterns. Each pattern will have matching color trend lines.
- The yellow horizontal lines shows support and resistance areas.
- Fib lines also shows support and resistance areas.
- The dotted white lines shows price projection for breakout or breakdown target.
Disclaimer: Do your own DD. Not an investment advice.
I am not a licensed professional. None of the posts that I published are investment advice. Do your own research.
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