Stock Analysis LPKR: Falling Wedge In The Beginning Of An Uptrend (Bullish)

 Stock LPKR formed a falling wedge pattern during its downtrend which led to an upside reversal.  As you can see, volume dissipates during the formation of the wedge pattern. Once the upper trend line was broken to the upside, the stock moved higher with ease.

Bullish confirmation of the pattern does not come until the resistance line is broken in convincing fashion. It is sometimes prudent to wait for a break above the previous reaction high for further confirmation. Once resistance is broken, there can sometimes be a correction to test the newfound support level.

While volume is not particularly important on rising wedges, it is an essential ingredient to confirm a falling wedge breakout. Without an expansion of volume, the breakout will lack conviction and be vulnerable to failure.[Read This in Bahasa Indonesia]





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