Crude Oil MCX Future - Pattern Trade - Cup & Handle

Sep 20

Cup & Handle Pattern Analysis by Numro Trader

• Breakout Point: 6560
  
• Ultimate Target: 6460
  
• Phase 1 Target: 6160
  
• Phase 2 Target: 6360
  
• Phase 3 Target: 6460
  
• Stoploss: 5860
  
  📊 Analysis:
  
  A Cup & Handle pattern has formed on the chart, signaling a potential bullish continuation. This classic pattern often precedes strong upward momentum when a breakout occurs above the handle's resistance.
  
  The key breakout level to watch here is 6560. Once the price crosses this point with volume confirmation, we could see a significant rally towards the ultimate target of 6460. For risk management and profit-taking, I've broken down the move into three phases:
  
  Phase 1 Target (6160): This is the initial resistance level where we might encounter some selling pressure, but if it clears, the bullish momentum is expected to continue.
  
  Phase 2 Target (6360): This represents the midpoint of the expected move, offering a second opportunity to lock in gains or adjust stop levels.
  
  Phase 3 Target (6460): The final target aligns with the full extension of the Cup & Handle formation, indicating the completion of the breakout move.
  
  Stoploss is placed at 5860, just below the handle's low, to protect against downside risk in case of a failed breakout. This level allows enough room for volatility but still controls the overall risk.
  
  💡 Strategy Insight:
  The Cup & Handle is a reliable bullish pattern that suggests accumulation followed by a breakout. Traders should wait for a clear breakout above 6560 with rising volume to confirm the move. Gradually scale out of your positions as the targets are hit to lock in profits while maintaining exposure to potential upside.
  
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