ARGENTINA MERVAL INDEX

Symmetrical triangles usually form during a trend as a continuation pattern. There are instances where symmetrical triangles mark trend reversals but in general they are part of a larger trend as a continuation pattern.

Symmetrical triangle on Argentina’s MERVAL index is one of those continuation patterns. Index broke down the lower boundary at 2,630 levels and since then it has been sharply lower. Since 2009 MERVAL had a good run. We are probably in a counter trend that is correcting the previous uptrend (827-3,680). 50%-62% fibonacci retracement levels are at 2,270 and 1,920 levels respectively. We should expect continued weakness after such breakdowns and this weakness is likely to pull the index towards the support area between 2,270 and 1,920.