Discussion in 'Technical Analysis' started by Dell-Boy, Jan 18, 2006.
If this pattern is guenuine expect target price of 1205
Isn't the "expanding wedge" a continuation pattern, not a reversal pattern? We'll see.
Sometimes called the broadening formation, this pattern often occurs at market tops.
Broadening top is relatively rare but powerful reversal formation. Should be accompanied by higher than normal volatility. SPX looks like it now but I'd wait for confirmation (breakdown 1245) before making any intermediate-term forecasts.
Your chart looks more like a diamond now, with the same bearish significance.
So much for TA. Everyone here sees different things.
A diamond or broadening top may be forming in the NQ, characterised by volatility, unusual formation. Will be interesting to see what happens. The advantage of TA awareness is that you will be on your toes while others will be flatfooted. If it takes a dump it will be a nice one.
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