Hi, I bet most of you would be familiar with this pattern and some of you might have even traded it. I would still not name it here and look for your answers in the comment section below.
Action near resistance zone You can see that the stock has been in a strong uptrend but faced a resistance near 3700 zone or level A(see chart). Observe heavy volume gap down in January from this level and the stock took almost 2months to finally get through 3700.
The second reaction The stock reacted for the second time from 3700 in the first half of March but could not break the low B. Rather it made a higher low C and then broke out of A.
Retest of an important zone The stock is pulling back to 3700 to test if any supply is still there. If 'holds' here, we can expect 4000 or 5000 psychological level or may be higher if there is overall market support.
Another simple method used by most traders is to measure the height of this pattern, that is from A to B and then add the number to A. This will give a probable figure 4150-4200.
Simple is not always easy Hold near 3700 means a bullish candle, which should be enough to take the trade. It could be a Doji, Hammer, Marubozu etc.
Bearish Scenario The opposite scenario could be that the price pushes strongly below 3700 again, which might turn the tables for a bearish action.
#For any bearish opportunities, one should wait for price to actually trade below C and then show further weakness (weak pullbacks etc. on the upside).
I hope this idea added to your knowledge. Don't forget to press🚀 and name the pattern or your experiences with this pattern below💬 Enjoy the new chart type (Volume candles) on TV⚡
Comment
⋅
At some point you must have to call it a failed pattern or BO..as in this case, a close below D.
sir hudco 212 se buy h kiya karu pls 🙏 target rakha
sunilkumarmeel
⋅
@anto1989 sir hudco 212 se buy h kiya karu pls target
AMIT-RAJAN
⋅
Cup and handle is very visible sir and maybe ascending trinagle breakout retest by another approach but indeed it is an intresting analysis as always with an awesome chart too i must say thank you for it