Cup and handle pattern in ICICI Bank
ICICI bank is trading at its all time high levels. Formed a very good cup and handle pattern recently and closed at high of the day in last trading session.
Cup and handle pattern is a bullish price formation.
Four stages of pattern formation as originally described by its founder, William O'Neil, are described below:
1) Previous uptrend taking a stock to a new high, approximately 1-3 months before the cup pattern begins.
2) Retracement of not more than 50% of the previous high creating a rounding bottom, forming a cup.
3) Re-attempt or rebound to its previous high, but subsequent decline, forming a handle part.
4) Finally breaks out again, crossing its previous highs, that are equal to the depth of the cup's low point.
ICICI bank chart is fulfilling almost all criteria of a classical cup and handle pattern. It has closed above the previous highest closing. Can be a good swing and positional opportunity. Levels are mentioned in chart.
Cup and handle pattern is a bullish price formation.
Four stages of pattern formation as originally described by its founder, William O'Neil, are described below:
1) Previous uptrend taking a stock to a new high, approximately 1-3 months before the cup pattern begins.
2) Retracement of not more than 50% of the previous high creating a rounding bottom, forming a cup.
3) Re-attempt or rebound to its previous high, but subsequent decline, forming a handle part.
4) Finally breaks out again, crossing its previous highs, that are equal to the depth of the cup's low point.
ICICI bank chart is fulfilling almost all criteria of a classical cup and handle pattern. It has closed above the previous highest closing. Can be a good swing and positional opportunity. Levels are mentioned in chart.
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