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lauralea
Feb 14, 2021 4:27 PM

Cup and Handle Long

NextEra Energy, Inc.NYSE

Description

Long after Fall from Rising wedge complete. This is not a huge rising wedge so fall will possibly be brief as it has dipped out of the bottom trendline. RWs are not valid unless the bottom trendline is broken. This pattern needs at least 3 weeks to form but can be a long term pattern. RWs interrupt supply and demand (there is too much supply) There will be a lack of touches to the bottom trendline. Both trendlines slope up and converge towards each other. Strong stocks do not fall down far as a rule and some stocks actually break up and out of a RW although price usually shows weakness a few weeks afterwards.

Possible stop below handle low or mid cup which is 77.65. Mid cup is close to handle low which also provides support at 78.82. If the handle low goes below mid cup, many consider the pattern invalidated.

The handle low is a horizontal congestion zone (HRZ) but sometimes it is not discernable as others.

Not a recommendation

Comment

If you dissect the candles on the handle, there is an obvious battle going on there.
I own this (sold half when I saw the RW) and plan to buy that half again when fall is complete from the RW which may be near the HL, and when the candle battle chills out (o:
Comments
AlphaJi
Comment here? I think a little blower and it touches the trend line I posted on my profile a while back.
chuckybils
How do you feel about the pattern trend as the week start closing?
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