Dow Jones - Bearish Rising Wedge

The Dow looks as though it has completed a Rising Wedge formation. This pattern is bearish and usually occurs on diminishing volume. Textbooks suggest that the pattern must have at least five touches; – that is, tests of the support and resistance trend lines should occur at least five times in total. Volume should increase as the breakdown increases in magnitude. It’s typical to see a 5% decline in price after the wedge formation. Should this hold true, a price target of 10,925 may be a possibility. Watch Fibonacci retracement levels for support.