The price formed a rounded bottom from November to early January, which is the cup. This shows gradual accumulation and exhaustion of selling pressure rather than panic selling.
After reaching the previous resistance zone near 1,240–1,250, the stock moved into a short, shallow pullback, forming the handle. The handle is tight and does not break the prior swing low, which is a healthy sign.
The handle is happening above key moving averages and near the breakout level, which strengthens the pattern quality.
Volumes during the cup were moderate and expanded near the right side of the cup. During the handle, volumes have cooled slightly, which is typical and constructive for a breakout.
A decisive close above 1,255–1,260 with good volume would confirm the cup and handle breakout.
Once confirmed, the pattern projection points towards 1,380–1,400, which also aligns with the measured move marked on the chart.
Entry can be planned on a close above 1,260 or on a minor dip near 1,220–1,230 if the handle support holds. A practical stop loss would be below 1,170, which is below the handle low.
Educational disclaimer: This explanation is for learning purposes only and not a buy or sell recommendation. Chart patterns can fail, and markets carry risk. Always combine technical analysis with risk management and personal due diligence before trading.
After reaching the previous resistance zone near 1,240–1,250, the stock moved into a short, shallow pullback, forming the handle. The handle is tight and does not break the prior swing low, which is a healthy sign.
The handle is happening above key moving averages and near the breakout level, which strengthens the pattern quality.
Volumes during the cup were moderate and expanded near the right side of the cup. During the handle, volumes have cooled slightly, which is typical and constructive for a breakout.
A decisive close above 1,255–1,260 with good volume would confirm the cup and handle breakout.
Once confirmed, the pattern projection points towards 1,380–1,400, which also aligns with the measured move marked on the chart.
Entry can be planned on a close above 1,260 or on a minor dip near 1,220–1,230 if the handle support holds. A practical stop loss would be below 1,170, which is below the handle low.
Educational disclaimer: This explanation is for learning purposes only and not a buy or sell recommendation. Chart patterns can fail, and markets carry risk. Always combine technical analysis with risk management and personal due diligence before trading.
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Thank God, it moved perfectly.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.