Potentially bullish setup in Arabtec could lead to a rush higher
A well-structured bullish symmetrical triangle pattern has formed in the daily chart of Arabtec Holding PJSC (ARTC).
In the chart below the brown dashed lines identify the parameters of the pattern, with each being confirmed by a third touch of price. You can also see volume drop as volatility declines with price moving closer to the apex of the triangle. Therefore, a breakout, either up or down, is likely to occur within the next 5-10 trading days. Potential momentum is building as the price range contracts.
An upside breakout is signaled on a decisive rally above 4.90, and confirmed on trade above 5.03. ARTC would then be targeting at least 6.18, derived from calculating the objective indicated by the triangle structure. Given the significant rally off the 2.35 early-July, the odds still favor a breakout higher.
However, if instead ARTC falls below 4.36, the potentially bullish pattern is failing and turning bearish. If that happens then watch for support around 3.74. At that point, if ARTC can stay above 3.74 then it may expanding into a larger rectangle pattern, which can be identified by the dotted blue horizontal lines.