|Sep 07, 2010
|Target Price Range:
|162.00 - 167.00
A Continuation Wedge (Bullish) is considered a bullish signal. It indicates a possible continuation of the current uptrend.
A Continuation Wedge (Bullish) consists of two converging trend lines. The trend lines are slanted downward. Unlike the Triangles where the apex is pointed to the right, the apex of this pattern is slanted downwards at an angle. This is because prices edge steadily lower in a converging pattern i.e. there are lower highs and lower lows. A bullish signal occurs when prices break above the upper trendline.
Over the weeks or months that this pattern forms the trend appears downward but the long-term range is still upward.
Volume should diminish as the pattern forms.