Join Dstockmarket's Community - Daily Market Analysis, Individual Stock Analysis.

Join Dstockmarket Telegram Group

Join Dstockmarket Facebook Page

Is Oceancash Pacific Showing A Descending Triangle?

by tom ek
(kuala lumpur)

Is the chart show descending triangle?

Comments for Is Oceancash Pacific Showing A Descending Triangle?

Average Rating starstarstarstarstar

Click here to add your own comments

Jan 18, 2018
Rating
starstarstarstarstar
Two Ways Of Looking At It
by: Stephen

Hi, first of all I would like to say you put a good effort to spot the pattern.

Yes, if we look at the weekly chart, we can definitely say that it is a descending triangle.

On the other hand, we can also say that this stock is consolidating sideways with support around 0.65. It is waiting to break above a downtrend line.

So what is the correct answer?

There are no one answers in trading/investing. Just the probabilities.

First of all, a descending triangle would work better if the stock is in a downtrend. From what we can see, the stock is in an uptrend.

Secondly, the descending triangle pattern happens in a weekly chart with stubborn support at 0.65.

Now that we have some facts in hand, we know that if the stock breaks below 0.65, the stock might collapse lower. On the other hand if it breaks the downtrendline, it might go higher.

As an investor, you would want to dig deeper into the story of the stock and look at the fundamentals of this company.

If you find the fundamentals deteriorating, then the odds of a weekly descending triangle materializing increases.

On the other hand, after you dig around and you find that the fundamentals of the company are improving, then the odds of it breaking the downtrendline to shoot higher increases.

So, technical analysis should not be used alone. Especially when it is in long term charts. You need to supplement it with some fundamental analysis as well.

Hope this helps.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Ask Me A Question Regarding Stocks.

  • Help support this page and press the Facebook Like button below. Thanks!

Join Dstockmarket's Facebook Page 

Recent Articles

  1. Chart Lessons From AGN - Triangle Breakout In Daily Chart

    Dec 04, 19 12:59 PM

    In this lesson, we will learn how a triangle breakout when AGN is in an uptrend help to send AGN higher tremendously.

    Read More

  2. US Stock Market Analysis December 2019

    Dec 04, 19 10:23 AM

    In this page, we will have a look at the US stock market and analyze where the SPX might be going.

    Read More

  3. KLCI Analysis December 2019

    Dec 04, 19 10:15 AM

    Welcome to the month of December. What is in store for the KLCI? Read more to find out. Will update this page frequently so come back for more.

    Read More

  4. Chart Lessons From SPX - 60 Min Ascending Triangle Breakout

    Dec 03, 19 08:59 AM

    In this lesson, we will see how the presence of a 60 min ascending triangle at the 60 min 200 MA help to point to a short term breakout.

    Read More

  5. The 4 Stock Market Stages Every Stock Will Go Through

    Dec 03, 19 03:43 AM

    Learn about the stock market stages that will help you unlock profit potentials in the stock market.

    Read More