by, James A. Hyerczyk
A late session sell-off in the France 40 (F40) index CFD ignited a break down through the support line of a triangle chart pattern on the 30-minute chart. This size of the last candlestick on this completed pattern has put the market well on its way to the Autochartist forecast zone at 2916.13 to 2868.01.
The overall quality of this chart pattern is 7-bars. The initial trend which was down at the onset of the formation is rated a low 2-bars. The uniformity rating which measures the number of touches of support and resistance as well as the distance between tops and bottoms is 9-bars. Clarity which rates the pattern based on the amount of market noise is a highly rated 7-bars.
The triangle chart pattern is a non-trending pattern. This one formed with the typical compression of the support and resistance lines. The compression often indicates impending volatility and the size of the breakout to the downside proved this point. The maximum 10-bar breakout rating indicates the presence of strong downside momentum and volatility. Look for sustained downside momentum to drive this market into the Autochartist forecast zone over the near-term.
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