TA still on track with its Cup and Handle formation but in critical position

TA still on track with its Cup and Handle formation. But it is still in a very critical position where a failure could happen. If we look at the weekly chart, we see a Doji candlestick after a long red one. This means traders are in an indecisive mood where they want the price to go. Or is it just Wealth calling the shots?

The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. As its name implies, there are two parts to the pattern: the cup and the handle. The cup forms after an advance and looks like a bowl or rounding bottom. As the cup is completed, a trading range develops on the right hand side and the handle is formed. A subsequent breakout from the handle’s trading range signals a continuation of the prior advance. -stockcharts.com

Caveat!

Leave a Reply