The Bullish Falling Wedge target of 927.09 (the top of The Wedge) got MADE in yesterday's trading. "Take profits, or at least some profits, when targets get MADE." There's no guarantee that the two remaining bullish targets will get MADE, so it's always a good idea to bank something.
Bears who didn't take any profits when their Bear Flag target of 898.18 got MADE got squeezed 30 points higher, and some of them watched their paper gains from the Bear Flag breakdown at 930.56 nearly evaporate in yesterday's session.
Wedges and Flags like this one in the daily chart, as we know, are notorious for "morphing" into other patterns, an example of which we'll see next in the intraday chart, with the Bull Flag (pattern in red). EDIT: Sorry, it's the pattern in purple, not red.
The rally to the 927.09 target is another example of the significance of "nested" patterns, and of multiple patterns. In this particular case, the 40 point rally off the 888.86 low contained five bullish patterns, beginning with the little Ascending Triangle in yellow, the Falling Wedge in blue, then the Cup & Handle in white (best seen in the intraday chart that we looked at last week), and finally, the Bull Flag in red, that "morphed" into the Ascending Triangle in orange.
Very nice chart structure and execution on the part of The Bulls, getting to the 927.09 target.
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