Hi everyone,

This hourly chart below looks to me like one that deserves a spot on traders' watch lists.

This was a chart I featured in a post on 25 November that identified the potential head and shoulders top labelled on the chart. Price went on to break the neck line leading to a nice downtrend.

We now have a similar sort of situation at the other end of the trend. Price has flattened out and become indecisive. At this stage the broad accumulation type pattern that has occurred since momentum was lost could be labelled as a falling wedge but may still morph into a double bottom or other pattern.

Like the head and shoulder it represents a potentially interesting risk: reward proposition for traders. A chance to enter at what may be the start of a significant new trend on a break out of the wedge but with a relatively close stop if the set up fails.

The preliminary profit objective noted on the chart projects the height of the wedge from a guestimated potential break out point through the resistance if this was to happen in the next day or so. This coincides with the top of the wedge pattern which is another typical profit strategy for this kind of pattern.

If this pattern remains in play I'll follow up with a post trading strategy options

Cheers

Ric