ACN (Accenture Ltd) will be added as an aggressive short entry here in anticipation of an imminent break below this bearish rising wedge pattern with a more conventional entry or add-on to come on a break below the pattern. Suggested stop over 104.30.
The entry at current levels, which will be the official entry for this trade, should be considered aggressive because I am shorting ACN in anticipation that prices are highly likely to continue lower and break below the rising wedge pattern very soon, most likely within days. One of my favorite trading patterns is shorting after an overthrow of a bearish rising wedge or going long following an overthrow (to the downside of the pattern) of a bullish falling wedge.
I've often highlighted and discussed wedge overthrows in the past. The occur when prices of a well-defined rising (bearish) or falling (bullish) wedge pattern sudden break out in the direction opposite than would be expected. For example, in this case, ACN has been moving higher within this bearish rising wedge pattern throughout 2015 with the bearish nature of the pattern confirmed via negative divergences on most price & momentum indicators & oscillators. A couple of weeks ago, prices shot up above the top of the wedge for a couple of days but quickly fell back down inside the pattern. More often than not, following a wedge overthrow, prices will quickly move back within the pattern, going on to breakout in the expected direction very quickly.
To reiterate, shorting before price break below the wedge should be considered aggressive as support (the bottom of the wedge) is support until broken. Therefore, more conventional or conservative traders might opt to wait for breakdown below the pattern, possibly even a daily close to help minimize the odds of shorting into a whipsaw signal.