TSX:SGR.UN - Post by User
Comment by
JustLongon Jan 08, 2009 2:13pm
213 Views
Post# 15691713
RE: RE: TA Update/or
RE: RE: TA Update/orVital Signs
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Rising wedges can be either reversal or continuation patterns. When they occur in a downtrend they are always continuation patterns.
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Although the news that is pushing the stock higher may be bullish, weak volume is an indication that professionals are not buying, indeed, these investors are using strength to unwind existing long positions and/or establish new short positions.
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Rising wedge formations in downtrends are distributive in nature. The fact that price is rising but volume is declining is a good indication that the move higher is illegitimate.
JL