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What is Bearish Rectangles and the importance of Bearish RectanglesBack

MCX Crude oil March contract inched 117 points down to closed at 2864.

A bearish rectangle form in Crude oil daily chart.

What is Bearish rectangles?

A Rectangle is a continuation pattern that forms as a trading range during a pause in the trend. The pattern is easily identifiable by two comparable highs and two comparable lows. The highs and lows can be connected to form two parallel lines that make up the top and bottom of a rectangle. Rectangles are sometimes referred to as trading ranges, consolidation zones or congestion areas.

If you see the charts in the blog you will see a bearish rectangle. In bearish rectangle if support breakout then you can sell the stock or commodity with the strict stop loss (SL will be 50% difference between the both line of rectangle); target will be the difference between the line.

Note: According to chart crude already breakout the support and nicely trading below it for the nearest target of 2750 then 2624.

 

 
 
 
Posted on: 14-Mar-2015 | Posted by: NIFM | Comment('0')
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