#ULTRACEMCO #RisingWedge long needs to be cautious
Ultracemco on weekly timeframe (although weekly closing is pending) is forming a rising wedge pattern and suggest that longs here need to be very cautious or start booking/trailing the profits.
Rising wedge pattern can be both a bearish continuation and bearish reversal pattern, when it is accompanied by declining volume it is a deadly combination and a clear signal for trend reversal or bearish trend continuation.
There is clear divergence of price and volume visible in charts where the rise from Jan'23 lows to until now hasn't seen increase in volume.
Bulls need to protect 6990 level on weekly closing basis to avoid activation of this pattern otherwise there is high probability of this setup getting activated and giving some pain to bulls here and 15-20% correction post breakdown can come.
Rising wedge patterns offer very low risk/high reward ratio and often they don't need confirmation of the breakdown as well as the target price which is generally placed around the bottom of the start of the trendline is achieved very fast.
This is not a buy or sell recommendation and just an educational post.
Rising wedge pattern can be both a bearish continuation and bearish reversal pattern, when it is accompanied by declining volume it is a deadly combination and a clear signal for trend reversal or bearish trend continuation.
There is clear divergence of price and volume visible in charts where the rise from Jan'23 lows to until now hasn't seen increase in volume.
Bulls need to protect 6990 level on weekly closing basis to avoid activation of this pattern otherwise there is high probability of this setup getting activated and giving some pain to bulls here and 15-20% correction post breakdown can come.
Rising wedge patterns offer very low risk/high reward ratio and often they don't need confirmation of the breakdown as well as the target price which is generally placed around the bottom of the start of the trendline is achieved very fast.
This is not a buy or sell recommendation and just an educational post.
Order cancelled:
Avoid this as it has broken upside
Comment:
Comment:
Comment:
Trade closed: stop reached