Greencross Ltd forms bearish "Descending Continuation Triangle" chart pattern
Dec 03, 2015
Recognia has detected a "Descending Continuation Triangle" chart pattern formed on Greencross Ltd (GXL:ASX). This bearish signal indicates that the stock price may fall from the close of 5.37 to the range of 2.90 - 3.40. The pattern formed over 103 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 increasingly lower highs and constant lows within this pattern tell us that sellers are more aggressive than buyers, confirmed by a break down through a support level to signal a continuation of the prior downtrend. A Descending Continuation Triangle, with its increasingly lower highs and constant lows, indicates that sellers are more aggressive than buyers The pattern typically forms because a demand for shares is available at a certain price, represented by the lower flat line propping the price up. But when the supply depletes, the shares quickly break down below the bottom boundary line and move lower.
This bearish pattern can be seen on the following chart and was detected by Recognia proprietary pattern recognition technology.
GXL Price at posting:
$5.12 Sentiment: None Disclosure: Not Held
