For today's chart we've chosen to take a look at Exelon Corp. (NYSE:EXC) because it is trading within a rising wedge pattern. As you can see from the chart below, the identified barriers have created an interested trading range and many bearish traders will now watch for the price to make a move toward the January low of $70. Bearish traders will wait for confirmation by entering a position when the price to closes below the lower trendline.
This formation is often regarded as a reversal pattern, but in this case it is used to predict the continuation of the downtrend that was started in January. Many technical traders will likely protect their positions by setting a stop-loss above the upper trendline and they will likely set their targets near $70.