I spotted potential cup & handle pattern on daily chart:
Here are some criteria and notes taken from http://www.investopedia.com/university/charts/charts3.asp
Here are some criteria and notes taken from http://www.investopedia.com/university/charts/charts3.asp
- This is a bullish continuation pattern where the upward trend has paused, and traded down, but will continue in an upward direction upon the completion of the pattern.
- First, it's important that there is an upward trend before the formation of the cup and handle.<- check
- The construct of the cup itself is also important: it should be a nicely rounded formation, similar to a semi-circle <- check?.
- The reason is that a cup-and-handle pattern is a signal of consolidation within a trend, where the weaker investors leave the market and new buyers and resolute holders stay in the security <- fundamentally plausible
- a traditional cup-and-handle pattern should be between one-third and two-thirds the size of the previous upward movement <- check
- During this downward move, a descending trendline can be drawn, which forms the signal for the breakout. A move by the security above this descending trendline is a signal that the prior upward trend is set to begin <- let's see
How exactly is the red portion satisfied?
"previous upward movement" meaning?
The cup caused a dip from ~ 300 to ~ 210, ie dip of $90
$90 is between 1/3 and 2/3 of $135
(Disclaimer: I am a not an expert at TA)