Autochartist Weekly Analysis
Westpac FBO (WBC.AX)
by James A. Hyerczyk
Westpac (WBC.AX) broke out to the upside with an expanded range when it crossed the resistance line of a triangle chart pattern on the 240-minute chart. The potentially bullish move followed several sessions of tight, sideways trading and set up the equity CFD for a potential move into the Autochartist price forecast zone at 21.42 to 21.82.
The overall quality of the chart pattern is rated an average 5-bars. The initial trend is rated a weak 1-bar. This quality indicator measures the strength of the initial trend prior to the chart pattern's formation. The initial trend is also up as well as the breakout, leading Autochartist to conclude that the trend change is a continuation move. The uniformity indicator is an impressive 8-bars. This quality indicator looks for the presence of equidistant tops and bottoms. The quality indicator which measures the influence of market gaps and price spikes on the overall chart pattern is rated 6-bars. This suggests a slightly below average amount of market noise.
The triangle chart pattern is a non-trending pattern. It is wide at the start, but gradually narrows as it compresses the support and resistance lines. The tighter the ranges become, the more pronounced the impending breakout. Although this pattern suggests that the support and resistance lines are still relatively wide, the size of the candlestick on the breakout suggests the presence of volatility. The 8-bar breakout rating suggests that this market has the momentum that is necessary to drive it into the Autochartist target zone within the predicted time period.
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