Trader's Logbook

Looks like the Rising wedge on BEL that we saw since last week of October has just claimed its victims. Although only few participated on the trade for BEL today, it has been sending a message through large red candlesticks for two days now. As we can see in our chart, the price break down the support (represented by the lower slope of the rising wedge).

While other traders are busy riding faster horses, holders of this stock might consider selling at low price and join the party.

The Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. In contrast to symmetrical triangles, which have no definitive slope and no bullish or bearish bias, rising wedges definitely slope up and have a bearish bias.

Caveat!