Nifty currently @ 8172, could see an intraday drop towards 8130 levels and then any close above 8195, could take the Nifty towards 8400 as per this pattern.a close below 8070 would negate this pattern.
Comments
praveen.bhatiya
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Pavanji, Cup with Handle is a continuation pattern which means that prior to forming the pattern there should be an uptrend. Price should rise by at least 30% leading to the cup. Please understand clearly that it is not a reversal pattern and don’t look for it at the bottom. May be you are mixing it with “Rounding Bottom” but that too we should look in day chart only. There are other criteria also for it to be valid for example it is a longer pattern lasts from 7 to 65 weeks even the handle should be minimum week but usually lasts 1 to 2 weeks.
Encyclopedia of Chart Patterns by Thomas Bulkowski is one of my favourite books to learn classical chart patterns.
Pavan7575
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sure sirji...will keep in mind...Will search for this book right away...@Praveen.bhatiya,
praveen.bhatiya
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Pavanji again I have to say something on cup with handle pattern which is contrary to your idea, so only if you like and permit me.
Pavan7575
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@Praveen.bhatiya, praveenji, always open to feedback...plz go ahead...
Encyclopedia of Chart Patterns by Thomas Bulkowski is one of my favourite books to learn classical chart patterns.