We been chopping just below the top rail of our bullish rising wedge formation for 5 days now with the top of the range being 505 and the bottom of the range being 477. It looks like we are in the process of testing the bottom of the range again at 477. A successful test of the bottom of the range at 477 would give us a nice little rectangle formation, which would give us the strength to break up through the top rail and get us on our way to new highs. These chopping moves can be frustrating as they give you what you are looking for and then take it all away creating a sense of confusion. For right now the bottom of the trading range at 477 is the key area to watch. Something to keep in mind is that we have been consolidating right at 4 months now with no clear trend or direction, only an upward chop. A break of the top rail of our bullish rising wedge will end the chopping and give us an impulse leg up from all the energy gathered from our consolidation pattern.
Rambus
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