The stock seems to have support here with a developing cup & handle patten which will target gap close at 61.40
Bullish MACD crossover
Buyzone: 57-56
Stoploss: 55
A **Cup and Handle** pattern is a technical chart pattern that resembles a cup with a handle, where the cup is in the shape of a "u" and the handle has a slight downward drift. This pattern is considered a bullish signal, extending an uptrend, and is used to spot opportunities to go long.
Here are some key points to consider when detecting cup and handle patterns: - **Length**: Cups with longer and more "U" shaped bottoms provide a stronger signal. Avoid cups with sharp "V" bottoms. - **Depth**: The cup should not be overly deep. Also, handles should form in the top half of the cup pattern. - **Volume**: Volume should decrease as prices decline and remain lower than average in the base of the bowl; it should then increase when the stock begins to make its move higher, back up to test the previous high.
The pattern was first described by William J. O'Neil in his 1988 classic book on technical analysis, "How to Make Money in Stocks". The full pattern is complete when price breaks out of this consolidation in the direction of the cup's advance. The price will likely continue in that direction though conservative traders may look for additional confirmation.