A Cup and Handle can be used as an entry pattern for the continuation of an established bullish trend. It´s one of the easiest patterns to identify. The cup has a soft U-shape, retraces the prior move for about ⅓ and looks like a bowl. After forming the cup, price pulls back to about ⅓ of the cups advance, forming the handle. The handle is a relatively short period of consolidation. The full pattern is complete when price breaks out of this consolidation in the direction of the cups advance.
The price will likely continue in that direction though conservative traders may look for additional confirmation. The target can be estimated using the technique of measuring the distance from the right peak of the cup to the bottom of the cup and extending it in the direction of the breakout. A common stop level is just outside the handle on the opposite side of the breakout. The Inverted Cup and Handle is the bearish version that can form after a downtrend. TradingView has a smart drawing tool that allows users to visually identify this pattern on a chart.
Nifty view for this week
Chart Pattern Shows 2 Observations
- Inverted Cup and Handle Pattern, Which shows Strong Bearish Move Below 11600
- Clear Down Trend Channel
- Fibonacci Retracement view shows, Market is taking support near 50%=11619
- Normally Nifty takes Support at 61.8% Retracement Level Which is 11506
- So 11500 is Very Very Important Support to hold...
Declaimer: This analysis is for Educational purpose and not for trade and investment.
ICICIBANK - Weekly - Cup n Handle
Target : 550- 600 Approx.
This analysis is invalid, if Weekly Close below : 290
Declaimer: This analysis is for Educational purpose and not for trade and investment.
DivisLab - Daily - Inverted Cup n Handle
Target : 1331- 1260 Approx.
This analysis is invalid, if Daily Close below : 1650
ABOVE 160 RECLTD WILL ZOOM TO 170 AND AND 180 IS RESISTANCE WE CAN SEE CONSOLIDATION TARGETS BIG WITH STOP LOSS 140 AND PRIMARY TREND IS ALSO BULLISH SO HOLD IN CASH AND BUY IN DIPS FOR LONG TERM ONLY A MARKET CRASH CAN DESTROY THE CHART OTHERWISE THE STOCK IS GOOD TO GO.... MYSELF INVESTED INC ASH SINCE MANY YEARS HAS DIVIDEND PAYOUT IS GOOD..
PLEASE CONSULT...
With Stop loss of Rs. 620 Buy long for the first target of Rs. 850 with longer term target of Rs. 1000
Note: This is my personal view based on technical analysis and charts.
If it breaks the lower support & Sustain, possible targets are mentioned in the charts..
And ADX is in strong selling mode. If everything goes well as per our prediction, will get 100+points..
All the Best.. Have a Profitable Trade..
Thanks,
Chandru
jindal steel charts shows inverted head and shoulder breakout, cup with handle pattern breakout, long term trendline breakout.
jindal steel postional buy close above 191 target 250.
add more on dips sl 160 .time duration -3 months
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