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.
Well,its actually a Cup and Handle pattern with yellow FLUTE as the neckline, awaiting the breakout/reversal. (in comment)
AFter drawing the yellow zone, the price action to the left looked like a head and the yellow zone looked like a flute.So went ahead and drew the rest of Krishna :D
Greaves cotton has been sideways between 113-145 since 8-9 months.A close above trendline i.e. 149-150 should be watched.Again monthly MACD is in sell at present watch if it gets into buy on 31-07-2018.If MACD gets into buy mode it could be big trigger & stock could go new lifetime high & start bull run.
Typical saucer shape formed after
good consolidation stock ready to zoom on upside.
Keep SL of 789 which is lower fiboo level
and for tgts follow upper fiboo level.
