Re: Just checked the chart again....seeing another wedge
in response to
by
posted on
Apr 03, 2019 06:35PM
I wish I could share the chart I'm looking at, it involves using a candlestick chart and drawing lines of support and resistance. I'm calling this a flag, and in my opinion its almost certainly a bull flag.
The lower support line, I start on March 7th at the lower end of the candle for that day at about $2.98, and then draw a line to the bottom of today's candle. What results is a line that is rising from left to right....with all the candlesticks for days between March 7th and today extending no further than the bottom of this support line.
For the support line I draw it from the top of March 18th candle at about $3.60 and extend it likewise to the top of today's candle. To make the support line longer I actually take it back to March 13th at $3.63 even though on March 13th the PPS moved as high as $3.70.....but that's for visual appeal and given the high volume that day its not surprising the PPS is outside of the wedge.....that's the only time.
The result?
You have a rising support line and a resistance line that is falling. What results is a triangle with the base at the bottom....a pennant or flag in other words. The belief is that the PPS is going to be stuck in this ever tightening range, and will break out before the two converge.
For tomorrow I put resistance at $3.43/$3.44 and support at $3.34/$3.35....and because the support line is rising sharply and the resistance line dropping equally sharply, it gets tighter and tighter each day. Friday I'd peg resistance/support at $3.42/$3.35 give or take a penny.
By Monday I see the two lines converging....basically leaving no room for price fluctuation. The belief is that the PPS has to break out of this ever tightening range before the two lines meet.
Clear as mud? How high might it go if it works out? Not going to hazzarrd a guess, except to say it should go higher than the $3.65 top of the flag.