Replies to post #37246 on ajtj99's Market Pulse

[plexxus]

>>>Aren't descending triangles bearish, by definition? I can see that breaking up and out of that pattern on good volume and holding the breakout would be bullish, but until that happens, shouldn't we assume the downside?>>>

Hi Ardent...Good question and here's my take. Descending triangles are bearish in downtrends but in uptrends bigger picture I've found them to be often quite bullish. The descending/lower highs tend to draw in lots of shorts adding fuel to the fire when they make the breakout moves. Also, I take into consideration the market winds which have been positive the past couple of months that also factors into my expectation in this play. I favor bullish outcomes in bullish market phases and vice versa. If one was to short this play this would be the place with a razor tight stop. Should that downtrend line break in convincing fashion (on a closing basis) I think it runs fairly hard. As always time will tell the tale.

Good Trading....!