The Descending Wedge is one of my favourite technical patterns to monitor as I find them to be one of the most reliable of all charting patterns. I have pages on my site with examples of this charting pattern in action that can be found through this link and this link. This post contains charts of US stocks that I’m currently monitoring as they set up within Descending Wedge patterns. I would want to see any trend line breakout on these charts confirmed by an uptick with Volume and move back above the weekly Cloud. Please note that there are no guarantees with ANY technical analysis and all trading carries risk. Traders should exercise appropriate risk management and only trade with funds they can afford to lose.
Please note that I have an article dedicated to Australian ASX stocks that are setting up in a Descending Wedge in the current edition of Your Trading Edge that can be sourced through this link.
ADTN weekly: any sustained wedge breakout would bring $35 into focus as a target given this is near the 61.8% Fibonacci level of the swing low consolidation move:
CCLP weekly: any sustained wedge breakout would bring $20 into focus as a target given this is near the 61.8% Fibonacci level of the swing low consolidation move:
CSTE weekly: any sustained wedge breakout would bring $40 into focus as a target given this is near the 61.8% Fibonacci level of the swing low consolidation move:
DEST weekly: any sustained wedge breakout would bring $20 into focus as a target given this is near the 61.8% Fibonacci level of the swing low consolidation move:
DO weekly: any sustained wedge breakout would bring $100 into focus as a target given this is near the 61.8% Fibonacci level of the swing low consolidation move:
GOGO weekly: any sustained wedge breakout would bring $20 into focus as a target given this is near the 50% Fibonacci level of the swing low consolidation move:
HAIN weekly: any sustained wedge breakout would bring $50 into focus as a target given this is near the 61.8% Fibonacci level of the swing low consolidation move:
MAT weekly: any sustained wedge breakout would bring $25 into focus as a target given this is near the 61.8% Fibonacci level of the swing low consolidation move. Note that this wedge has been recently revised:
NAT weekly: any sustained wedge breakout would bring $35 into focus as a target given this is near the 61.8% Fibonacci level of the swing low consolidation move:
NBL weekly: any sustained wedge breakout would bring $53 into focus as a target given this is near the 61.8% Fibonacci level of the swing low consolidation move:
OSTK weekly: any sustained wedge breakout would bring $60 into focus as a target given this is near the 61.8% Fibonacci level of the swing low consolidation move. Note that this wedge has been recently revised:
By Mary McNamara – May 6, 2019
Source: Tradecharting.com