Chasen Holdings Ltd forms bearish "Top Triangle" chart pattern
Aug 17, 2020
Recognia has detected a "Top Triangle" chart pattern formed on Chasen Holdings Ltd (5NV:SGX-ST).
This bearish signal indicates that the stock price may fall from the close of 0.055 to the range of
0.040 - 0.040. The pattern formed over 34 days which is roughly the period of time in which the target
price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to have reached a top, showing signs of reversal as it has broken downward
after a period of uncertainty or consolidation. A Top Triangle shows two converging trendlines as prices
reach lower highs and higher (or stable) lows. Volume diminishes as the price swings back and forth
between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the
triangle reaches its apex, the price breaks down below the lower trendline with a noticeable increase in
volume, confirming this bearish pattern as a reversal of the prior uptrend.
This bearish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.
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Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.
Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.
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