Toast Facing Rising Wedge Fear or Possible Trend ReversalToast, Inc. Class ABATS:TOSTreasonableFlam46485Indicator "All Chart Patterns" detected a rising wedge awaiting breakdown to $19. The chart here calls out three signposts that may indicate the validation of a price collapse, but I find this to be a pessimistic outlook for the company for several reasons: 1) There was enormous volume on June 30th thanks to Toast's inclusion in the S&P Mid Cap 400, forcing a rebalancing of institutional portfolios which should be considered a good thing as we are seeing a boost in confidence and positive sentiment in the company. 2) Toast's financials look great considering their net income has turned positive for two years running and they have very little debt compared to cash. 3) There is a strong, long-term base at $22 which has been retested several times over the last several years. Possible support for the rising wedge breakdown include: -1) Profit Taking. The good news of being added to Mid Cap 400 could lead to quick sell-offs to capitalize on any short-term gains. -2) Market limit. How many customers can Toast acquire in the industry? Though, this is a long-term issue which I do not see affecting its price in the next few weeks or months. -3) Industry volatility. Restaurants come and go, so how can Toast secure -4) Competition from other systems. Go to 10 restaurants and you are likely to see 10 different payment systems. How can Toast assert itself in a tough market? The only real short-term problem I see for Toast is the possibility of profit taking. Still, that would likely mean a buying opportunity and not a total collapse of confidence. If the price starts to break down through signpost 2 I will become worried. If it hits signpost 3 then I will see it as a huge buying opportunity and not a failure of the company. Cheers