Approaching A Major Breakout After Prolonged Consolidation

Aug 9

✅The stock has been forming a falling wedge pattern, which is a bullish reversal pattern. A breakout above the upper trendline of the wedge signals a potential reversal from the long-term downtrend to an uptrend. The falling wedge indicates that the stock has been in a prolonged consolidation phase, and a breakout could trigger a significant upward move.

✅There is a noticeable increase in volume as the stock approaches the upper trendline of the wedge, suggesting that buyers are stepping in. A spike in volume during the breakout is essential for confirming the validity of the breakout and increasing the likelihood of a sustained move.

✅The RSI is currently around 69.20, indicating strong bullish momentum. As the RSI approaches the overbought zone, it suggests that the buying pressure is increasing, which is often a precursor to a breakout.