Wednesday, November 25, 2009
Cup and handle
I got to looking at that chart of the nasdaq again.
I'm willing to go out on a limb here and state that the recent decline from the 52-week high, and the rally back up, constitutes a "cup" in a cup and handle pattern. Notice how there were Climax High signals (marked in red) at the beginning and end off the cup.
And now it's forming a "handle", which is a relatively shallow correction compared to the cup, usually somewhat sideways and not showing a lot of distribution.
If all goes well we can expect a breakout from the handle to new highs (above 2200). Hard to guess the timing, it might take a couple of weeks, or maybe longer.
I'm willing to go out on a limb here and state that the recent decline from the 52-week high, and the rally back up, constitutes a "cup" in a cup and handle pattern. Notice how there were Climax High signals (marked in red) at the beginning and end off the cup.
And now it's forming a "handle", which is a relatively shallow correction compared to the cup, usually somewhat sideways and not showing a lot of distribution.
If all goes well we can expect a breakout from the handle to new highs (above 2200). Hard to guess the timing, it might take a couple of weeks, or maybe longer.
// posted by gigascanner @ 6:33 AM 
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