Sunday, February 22, 2009

Raising Wedge Pattern and Dow Jones Monthly Chart(1973 - 2009)

The "Raising Wedge" pattern is a reversal signal if it appears in an uptrend. A more details of this pattern can be found in the following link.
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:rising_wedge_reversa

The image shows the Dow Jones Monthly chart(1973 to 2009) where Raising Wedge pattern is formed. The reversal signal happened on June 2008.

The Down Jones index closed below the blue line on Feb 20 2009. Previously the index just tested the blue line but not closed below that!!. See the small two white circles in the image.
Please note that since the graph is a monthly chart still one more week is there for the last bar to complete. Hope the the index may close above the blue line by next week.


See the big white circle in the image. The index tested the yellow line!! in the year 1974. What about this time??. To retest yellow line the index has to come near 5628 mark!!!. Will it be??
time has to tell that . Wait and see!!.


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