Daily Chart
A pause in the fall.The chart below shows a falling megaphone pattern where the rallies are getting bigger.Such a pattern normally has bullish implications and should breakout on the upside after making a third touch of the support line.This would be in line with reaching the rising wedge target shown above.
Fyi,
The descending megaphone is a rare formation can be recognized by the successively higher
highs and lower lows, which form after a downward move. Usually, two
higher highs between three lower lows form the pattern, which is
completed when prices break above the second higher high and do not fall
below it.
The pattern is completed when,
usually on the third upswing within the pattern, prices break above the
prior high but fail to fall below this level again.
For a more detailed study check out my post on www.trend-wise.com at this link http://www.trend-wise.com/2012/06/chart-watch-s-500.html
Daily Chart
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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
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