In the book "How to make money in stocks" by IBD's founder William O'Nell, he wrote on the cup and handle formation on stocks which is a bullish continuation pattern. Cup patterns can last from 7 weeks to as long as 65 weeks, but most of them last for three to six months.
Cup and handle formation on weekly charts are very powerful as weekly charts are mostly used by institutions who seldom move in and out of their stocks holdings due to the massive amount of their portfolio. Institutional players are mostly position traders who gets in before the crowd at the accumulation phase.
Let's take a look for a stock (Aloca - AA) which has already completed the cup and handle pattern. See the cup and handle pattern?
Now let's take a look at the Direxion Financial Bull 3X ETF. Note the similiarities except that the stock has yet to break out. It is currently bouncing off the support on top of the Ichimoko Clouds.I am looking to load up FAS on coming Monday with stop loss, of cos.
Let's take a look for a stock (Aloca - AA) which has already completed the cup and handle pattern. See the cup and handle pattern?
Now let's take a look at the Direxion Financial Bull 3X ETF. Note the similiarities except that the stock has yet to break out. It is currently bouncing off the support on top of the Ichimoko Clouds.I am looking to load up FAS on coming Monday with stop loss, of cos.
No comments:
Post a Comment