Rising Wedge on DNL

Price movement of DNL shows some bearish pattern as it create a higher high and higher low. This pattern is what we call a Rising Wedge in an upward trend. A rising wedge is generally considered bearish and is usually found in downtrends. They can be found in uptrends too, but would still generally be regarded as bearish.

Observe also the RSI or Relative Strength Index of DNL. While the price creates higher highs, RSI is creating lower highs which suggests there’s a bearish divergence on our strength indicator.

Ichimoku elements are still in a bullish mood so lets see if the bulls will be able to negate the bearish sentiment.

Caveat!

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felix

A computer engineer by profession and loves to develop online systems/websites. A self-taught stock trader who loves to share his knowledge and enjoys learning, expanding knowledge and staying well-informed. Most often he uses candlesticks, Fibonacci Retracement levels, Ichimoku system on his technical analysis but loves to hear some rumors as well.

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