Good morning everyone,
it would appear to regular readers that I have switched from triangles to wedges in recent weeks but as with all technical analysis you simply call ’em as you see ’em. On that very sage note take a look at the chart for Amcor which is showing a broad wedge setup which will have a reasonably large profit target assuming that the breakout occurs in line with a normal setup:
Source: Metastock. Data by Equis.
The standard profit target on this setup would have the trader looking for an initial move of around $0.60. Even though as you can see the broader momentum of this chart is upward this type of setup works on both the long and the short side of the market so be sure to watch for a breakout in either direction.
I will take a look at some places where you may wish to place your stop loss after the breakout has occured.
All the best,