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Cupandhandlepattern

GOLD: BIG PICTURE & LONG TERM ANALYSISLet's look at the weekly chart for GOLD. For that it's important to analyse all technical aspects and keep an open mind. Long term investors will see 2 major patterns here: 1. a major kind of rising wedge (red lines): price is evolving between the 2 red lines since 2008, forming a rising wedge when you connect the highs and lows. What does it mean from a technical point of view? Although the price is in an up-trend, a rising wedge is generally a bearish signal as it indicates a possible reversal during this up-trend. Rising wedges indicate the likelihood of falling prices after a breakout through the lower trend line. As every technical pattern, it does not mean it will materialise, but at least it gives you clear levels of supports and resistances. Even if this bearish pattern materialises, the wedge can extend until 2030, so Gold can rise way more before falling. 2. a massive cup and handle: A cup and handle price pattern is a technical indicator that resembles a cup with a handle. As you can see on the chart, the cup formed from 2011 to 2020, while the handle has been forming since 2020 until now. A cup and handle is considered a bullish signal extending an uptrend. After the high forms on the right side of the cup, there is a pullback that forms the handle. Sometimes this handle resembles a flag or pennant that slopes downward. This is exactly what we are seeing now (blue dotted lines). The blue dotted lines are giving you short term supports and resistances levels. Use these to trade GOLD on a shorter time frame. The handle represents the final pullback before the big breakout and can retrace up to 1/3 of the cup's advance. Sometimes it can retrace up to 1/2 but not more. I have added the Fibonacci retracements on the chart, Gold has retraced 0.382, which is ideal for a bounce. The target of a cup and handle is the height of the cup added to the breakout point (the neckline) of the handle. The neckline is the upper red line of the rising wedge. If we project the height of the cup we get a target zone between $3400 and $3500. We could see Gold consolidating a bit more within the blue dotted line channel. As long as we do not fall below the max retracement zone and lower red line, the formation is bullish long term. A break upwards of the blue dotted line channel would trigger a long trade to the red line. A break of the upper red line would confirm the cup and handle pattern. A break of the lower red line won't be good at all for bulls. Note that the above analysis is purely based on technicals and do not take into consideration fundamentals.
TVC:GOLDLong
by Elpidaldo
PI INDUSTRY - Positional Trade + Keep an Eye📊 Script: PIIND ( PI INDUSTRIES LIMITED) 📊 Nifty50 Stock: NO 📊 Sectoral Index: NIFTY 500 📊 Sector: Chemicals ( Commodities ) 📊 Industry: Pesticides & Agrochemicals Key highlights: 💡⚡ On basis of Weekly Chart 📈 Script is trading at upper band of Bollinger Bands (BB). 📈 MACD is giving crossover. 📈 Double Moving Averages also giving crossover. 📈 Script is forming Cup & Handle pattern on weekly chart as shown into chart. 📈 Script is facing Hurdle at near 3534 level which is also Neckline of Cup & Handle Pattern. 📈 Volume is increasing along with price. 📈 Current RSI is around 64. 📈 One can go for Swing Trade above 3534. BUY ONLY ABOVE 3534 LEVEL ⏱️ C.M.P 📑💰- 3485 🟢 Target 🎯🏆 - 4000 ⚠️ Stoploss ☠️🚫 - 317 ⚠️ Important: Always maintain your Risk & Reward Ratio. ⚠️ Purely technical based pick. ✅Like and follow to never miss a new idea!✅ Disclaimer: I am not SEBI Registered Advisor. My posts are purely for training and educational purposes. Eat🍜 Sleep😴 TradingView📈 Repeat🔁 Happy learning with trading. Cheers!🥂
NSE:PIINDLong
by radha_23
1
🟨 Cup and Handle Pattern - cheat sheetWhat is the Cup and Handle Pattern? One of the most important chart patterns in the stock market is the Cup and Handle Pattern, invented by William O’Neill. Sometimes you might see it abbreviated as CWH. It also holds the crowd proclaimed title as one of the most profitable and reliable breakout patterns. The Cup and Handle Pattern forms as a bullish continuation pattern that can be found during strong trend. –––––––––––––––––––––––––––––––––––– Is Cup and Handle Pattern Bullish? William O'Neil cup and handle patterns represent bullish continuation patterns that mark consolidation periods which are followed by breakouts. This pattern includes two components: cup and handle . After advancing, this cup is formed in a bowl shape or with a rounded bottom. Handle forms in the upper third of the cup. –––––––––––––––––––––––––––––––––––– Stages of a Cup and Handle Pattern Formation Stage 1 Setup: The pattern starts when a price raises from a former base, making the prior trend a bullish trend. At some the profit taking starts taking place and the stock begins the decline, forming the high of the cup. The high of the cup is also called the ‘Left Cup’ Stage 2: Decline: The stock starts to form a new base. It is normal to see above average volume at the beginning of the decline. The volume element is important since it ensures that later buyers to the party are out of the stock and do not provide an overhead supply. By the end of Stage 2 the volume would have fallen below average. This low trading volume is combined with price consolidation around the low of the cup. Stage 3 Recovery: The stock starts to recover and the volume on up days starts to pick up. This indicates that institutions are taking interest in the stock. Pro tip: look for low volume on down days. Now we still have a few more types of players into the stock: the bottom fishers who bought in at the low of the cup and the bag holders who have bought at the high of the cup and have been sitting on a loss. As the stock price moves up, these would partially close their positions making the recovery process a stair stepping process rather than a V shaped recovery. As the price reaches close to the High of the cup, the last bag-holders will cut their losses and will create a large volume sell-off. At this point the “Pivot” is formed or the “High of the Handle”. Stage 4 Consolidation: After the High of the handle, the price is likely to continue its handle formation. The handle pattern occurs as there are still weak hands in the ticker. A shakeout preferably on higher volume is considered a bullish continuation in the cup and handle pattern formation . This indicates that all overhead supply is depleted. The point when the price starts to climb again and reaches the high of the handle is the breakout point. We will look for a to price breaks on higher volume to indicate that institutions have taken control of the stock and that the sky is clear to move upwards. A rule of thumb is to look for a price target with the same value as the prior advance from previous base as the one subsequent to Stage 1. –––––––––––––––––––––––––––––––––––– Hope this helps! Example of Cup and Handle on AAPL from 2003
Education
by TintinTrading
1
LNG ( Natural Gas ) Breakout from Cup and Handle LONGThis is a classical chart pattern. The bullish continuation would be expected to be about $25.00 of upside given the height of the cup. The short time MAs have crossed the intermediate MA from underneath in a "Golden Cross" while positive momentum just started on the squeeze indicator. Fundamentally this makes sense with the winter heating season and the energy sector the best performing this year. I will choose a Feb 23 call option 15% above current price. ina
LLong
by AwesomeAvani
NFLX: GAP FILL PLAY AND POTENTIAL CUP N HANDLENFLX has lost 76% from its November highs to its July lows. Looking at the chart from a purely technical point of view, here is what I see: - the stock has not retraced much of its down move. A 0.382 retrace would be at $366 and a 0.5 retrace would be at $428. - There's a huge gap between $331 and $249/250. If we were to fill the gap, the target would be $331. To play the gap fill I' d wait for the price to break $250. - A cup and handle is forming with a target between $331 and $366. However the pattern will only be confirmed should we break $250. I'm neutral now, but I'm watching the stock closely. A break of $250 would trigger a long entry with a stop at 240. Keep it on your watch list. Trade safe.
NASDAQ:NFLX
by Elpidaldo
GOING LONG IN USDCADI am taking a long position in USDCAD as we saw it recently form a cup and handle pattern which is a continuation pattern. As we saw previously there is a bullish trend before the cup and handle pattern so we expect it to continue after the formation of the pattern. As we have seen how beautifully it is going up the same length from the middle of the cup after the formation of the pattern As we draw Fibonacci support it is taking support of 0.63 which is a golden ratio of retracement If we see Dial Indicator which is telling us there is a huge sale at the moment so we need to purchase the fear & sell the greed Let's see what happens next
Long
by hassamsaeed
Possible BOIL Cup and Handle in formation ENERGY PLAY LONGBOIL could be setting up a long continuation trade Now working on the handle. MACD shows the lines crossed while under the histogram is very often an excellent sign. Time will tell- My preferred trade will be call options expiring in late January or February. ( This is a triple-leveraged natural gas play with the upcoming winter heating season expected to be expensive especially in Europe. The inverse is KOLD which would be a good put option right now.) AMEX:BOIL
AMEX:BOILLong
by AwesomeAvani