KELLTONTEC - 2.5 year long Cup & Handle Pattern Breakout
Here's a technical analysis of the KELLTONTEC stock chart:
Key Observations
Cup and Handle Pattern:
The chart shows a cup and handle formation, which is a bullish continuation pattern indicating the potential for an upward breakout. The "cup" forms after a rounded bottom, and the "handle" represents a minor consolidation before a breakout attempt.
Major Resistance Area:
There is a well-defined major resistance area that the stock previously tested. After breaking above this level, the stock is now consolidating, creating a strong base before possibly moving higher.
17-Week Small Base:
The stock has been consolidating for 17 weeks, forming a small base just above the major resistance area. This base suggests that the stock is stabilizing, and this consolidation could provide support for a strong breakout.
128-Week Strong Base:
The stock is building on a much larger 128-week base. This extended period of accumulation signifies that the stock has gained a significant foundation, increasing the probability of a sustained move if it breaks out.
Volume Analysis:
High volume during upward moves and low volume during pullbacks indicates healthy demand. The low volume during consolidation suggests that selling pressure is minimal, while high volume spikes during upward movements indicate buyer interest.
Volume also picked up around the 20-week EMA, showing support from buyers near this level.
Bounce from 20-Week EMA:
The price has consistently bounced off the 20-week EMA, showing it as a strong support level. This reinforces the uptrend and indicates buying demand whenever the stock approaches this EMA.
Trade Setup with Key Levels
Entry Point:
Breakout Entry: Enter above the high of the handle at around 160-165 for breakout confirmation.
Targets:
Target 1: 225 – Based on initial resistance.
Target 2: 280 – A higher resistance level, achievable if the breakout gains momentum.
Target 3: 373 – A longer-term target that aligns with the larger base breakout potential.
Target 4: 450 – For a longer-term position, based on the depth of the cup and potential for an extended move.
Key Observations
Cup and Handle Pattern:
The chart shows a cup and handle formation, which is a bullish continuation pattern indicating the potential for an upward breakout. The "cup" forms after a rounded bottom, and the "handle" represents a minor consolidation before a breakout attempt.
Major Resistance Area:
There is a well-defined major resistance area that the stock previously tested. After breaking above this level, the stock is now consolidating, creating a strong base before possibly moving higher.
17-Week Small Base:
The stock has been consolidating for 17 weeks, forming a small base just above the major resistance area. This base suggests that the stock is stabilizing, and this consolidation could provide support for a strong breakout.
128-Week Strong Base:
The stock is building on a much larger 128-week base. This extended period of accumulation signifies that the stock has gained a significant foundation, increasing the probability of a sustained move if it breaks out.
Volume Analysis:
High volume during upward moves and low volume during pullbacks indicates healthy demand. The low volume during consolidation suggests that selling pressure is minimal, while high volume spikes during upward movements indicate buyer interest.
Volume also picked up around the 20-week EMA, showing support from buyers near this level.
Bounce from 20-Week EMA:
The price has consistently bounced off the 20-week EMA, showing it as a strong support level. This reinforces the uptrend and indicates buying demand whenever the stock approaches this EMA.
Trade Setup with Key Levels
Entry Point:
Breakout Entry: Enter above the high of the handle at around 160-165 for breakout confirmation.
Targets:
Target 1: 225 – Based on initial resistance.
Target 2: 280 – A higher resistance level, achievable if the breakout gains momentum.
Target 3: 373 – A longer-term target that aligns with the larger base breakout potential.
Target 4: 450 – For a longer-term position, based on the depth of the cup and potential for an extended move.
Disclaimer
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