CAKE - 5 months CUP & HANDLE BOTTOM
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Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
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Hello Traders ✌
Although the Cup & Handle is more reliable as a continuation pattern, here we have a really good one coming out of a perfect Channel that has contained and guided the bearish trend of the last year and a half. The pattern has taken place exactly below the 200 Days EMA and is now attempting a breakout.
1) I'm not sure it is still the time to trust a bullish pattern when the reference index (Nasdaq in this case) is still bearish.
2) We have earnings release in two sessions (November the 1st) so I will not take this opportunity now. I don’t want to be in the market when earnings release is less than ten days after the breakout.
So, be very careful in evaluating this opportunity and consider tightening your trading plan parameters if you would decide to enter the market.
Keep in mind that, if prices go towards the target, we will have to deal with the two previous levels in the 39.60 and 41.10 area.
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
═════════════════════════════
Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
══════════════════════════════
Hello Traders ✌
Although the Cup & Handle is more reliable as a continuation pattern, here we have a really good one coming out of a perfect Channel that has contained and guided the bearish trend of the last year and a half. The pattern has taken place exactly below the 200 Days EMA and is now attempting a breakout.
1) I'm not sure it is still the time to trust a bullish pattern when the reference index (Nasdaq in this case) is still bearish.
2) We have earnings release in two sessions (November the 1st) so I will not take this opportunity now. I don’t want to be in the market when earnings release is less than ten days after the breakout.
So, be very careful in evaluating this opportunity and consider tightening your trading plan parameters if you would decide to enter the market.
Keep in mind that, if prices go towards the target, we will have to deal with the two previous levels in the 39.60 and 41.10 area.
- Pattern Class: 🌕🌕🌕🌕🌕
- Target area: 42.60
- Breakout area above: 35.70
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
═════════════════════════════
⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
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