ta01 a "wedge" formation that is evident on the three-month dail

A new active bearish pattern is active in Sina this morning, a "wedge" formation that is evident on the three-month daily chart below.

This counter-trend pattern is rising in price against the prevailing downdraft that preceded it. When the wedge becomes active, as it did in the case of this Chinese advertising stock by breaking the low of the pattern at the $123 area, the previous trend reasserts itself.

The vertical orange line on the chart is the potential downside. If the pattern remains active and completes, it has potential to the $105 to $104 area. If price rises back above the low of the pattern shown by the sloping orange lines, the pattern would be inactive and in this instance that would mean likely no longer valid.



(Chart courtesy of tradeMONSTER )