US30 setting up in wedge pattern

Good morning all,

this is a pattern that was spotted by the CMC Markets Pattern Recognition feature that is built into our platform on the US30 Index CFD hourly chart:

The wedge is a formation that is treated in a similar fashion to the triangle in that the trader would typically trade once a breakout has occured and look for an initial profit target based of the height of the pattern extrapolated from the breakout point.

Depending on which way the breakout occurs you will need to determine your stop loss placement accordingly though the region around the 12,710 mark seems to be a potential inflection area to consider.

Let me know if you have any questions or thoughts and one of us will answer them as soon as possible.

All the best,

Dave.

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