Rising Wedge Formation: Trend Reversal and Short OpportunityRising Wedge Dynamics:
The chart shows a clear ascending channel, with the price respecting both the upper and lower trendlines over time.
While the trend remains bullish within the channel, the narrowing distance between the trendlines suggests a loss of momentum, a hallmark of a rising wedge.
This pattern is inherently bearish, as it signals that buyers are losing strength, and a breakout to the downside is likely.
Critical Buy/Sell Zone:
The marked buy/sell zone near the top of the wedge represents the point where the price reaches resistance and is likely to reverse.
This zone coincides with a key intersection of the upper trendline, the limits of the rising wedge, and potential overextension of the price.
The volume in this area will be a critical confirming indicator — if volume spikes while price fails to make significant upward progress, this would strengthen the bearish case.
