Trader's Logbook

Been speculating on ABA to reverse after seeing the first Doji inside the Falling Wedge Pattern but even with other positive indicators it didn’t rally. Although it didn’t go down as well. Looking at the volume maybe we can get a clue. Nobody is interested on this stock for now! Maybe some are accumulating around 0.70 – 0.72 level? A ‘soft’ breakout from the Falling Wedge last October 4 maybe a short-lived one as we see a Dragonfly Doji which suggests indecision among traders. Or maybe this one is true: Once resistance is broken, there can sometimes be a correction to test the new found support level.

The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. In contrast to symmetrical triangles, which have no definitive slope and no bias, falling wedges definitely slope down and have a bullish bias. However, this bullish bias cannot be realized until a resistance breakout.

I will still be holding mine just in case a breakout will happen this week. Looking at the weekly chart I can see a bullish pattern but not that strong though.

Caveat!