Rising wedge patterns are often found at the end of an Elliot 5 wave rally. This is what could be happening with the NASDAQ Index

US NDAQ 100 chart

I’ve drawn the wedge on the chart below.

One common approach to chart based trading is to base entry strategies on trend turning points. That allows a quick stop loss if the trend does not turn but if it does; the payoff can be good.

If this wedge is going to be a turning point, NDAQ will rise to a level a little either side of the resistance line and then begin to fall away, rejecting the resistance. The strategy would be to sell if that happens, placing a buy stop above wherever the peak is established. 

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.