Are we at the bottom of this stock’s trading range? Looks like it but one should be careful as it might also go down further. Price of BEL is moving within a rectangle formation on weekly chart.
A Rectangle is a continuation pattern that forms as a trading range during a pause in the trend. The pattern is identifiable by two comparable highs and two comparable lows. The highs and lows can be connected to form two parallel lines that make up the top and bottom of a rectangle. Rectangles are sometimes referred to as trading ranges, consolidation zones or congestion areas.
Rectangle pattern is not complete until a breakout has occurred. Sometimes clues can be found, but the direction of the breakout is usually not determinable beforehand.