Happy New Year Everyone! We finally reached the target price of the Harmonic Bearish Crab Pattern and Ascending Triangle which was seen last December 2011. Check my previous post
Let's move on and check out the bigger pattern. From 2010 to present, we see a megaphone shaped pattern... tilted up with horizontal bottom. The bottom or support trend line is horizontal while the top or resistance line slopes upward. At least two peaks and two valleys should touch their respective trend line. The pattern is called Right-Angled and Ascending Broadening Formation. The target price is 5500 if it will breakout from the resistance line (upward slope) while the target price is 2800 if it will breakdown from the horizontal support line.
Price is now at the resistance line of the megaphone pattern and also at the Major Support Up Trend Line (Dotted Red Line). RSI (30) also facing a resistance line... previous RSI high. If both Price and RSI will breakout from their resistance, we might see that price will traverse again to the Major Support Up Trend Line. If it reacts to the resistance and reverses... it will move and test to the 46xx, 45xx, 4xx support lines.
Just to add, using Harmonics, price is also at the level of 1.13 of XAB pattern... If price will move out from that pattern it confirms the breakout but if it reverses from that PRZ (potential reversal zone), it might be a failed breakout. The pattern in Harmonics is called 1.13 Extension - The Failed Wave.
It's more fun in the Philippines! =)
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