The Ross Wedge Pattern ROST March 23

Mar 23, 2016: 10:48 AM CST

Ross Stores (ROST) is forming a Rising Wedge worthy of our consideration.

Let’s note how the popular price pattern progressed and what may be in store for the near-term future.

Ross Stores (ROST) Daily Chart:

Check out our educational page on “Bullish and Bearish Rising Wedges” and compare it to the current pattern.

Also, study this morning’s educational post on “The Bearish Rising Wedge Lesson from Virgin America.

Ross Stores (ROST) is a relatively strong stock in a rising uptrend that is facing a key challenge – and trading opportunity – right now.

Generally Rising Wedges are bearish (short-term reversal) price patterns that advocate caution (and profit taking).

The compressing trendines currently overlap the $58.00 and $59.50 per share levels as highlighted.

Price has been bouncing between these two levels since late 2015 and continue to do so today.

Like a sideways range, a Bearish Rising Wedge is a compression pattern ahead of a likely range expansion or breakout event.

Look for a downside break under $57.50 per share to trigger an aggressive short-sell (liquidation) opportunity down toward lower price levels such as $55.00 and ultimately $52.00 per share.

The alternate thesis – and “pattern interrupt” – would be a continuation higher within these compressing boundaries.

A straight-up price breakout is less-likely given the negative divergences undercutting price.

Focus on the trendline levels and possible ‘sell-swing’ opportunity suggested by the pattern.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “The Ross Wedge Pattern ROST March 23”

  1. The Bearish Rising Wedge Lesson from Virgin America VA | Afraid to Trade.com Blog Says:

    […] Second, to see a real-time example taking place, see this morning’s post “The Ross Wedge Pattern.” […]

  2. The "Bearish Rising Wedge" Pattern Says:

    […] Second, to see a real-time example taking place, see this morning’s post “The Ross Wedge Pattern.” […]