If you traded long enough, you know that no matter how great looking a chart pattern is, it could still fail. NASDAQ:SPTN
is a good example of that. The 2 months Cup and Handle
chart pattern was very well defined with a breakout few days ago on decent volume
. Stock stalled right after the breakout with no follow through and ultimately dropped below horizontal breakout line. When you enter a trade, always make sure to know when it is time to exist. Use your trade management skills and use stop losses. This setup is still valid as long as the price does not close below $20. For now the stock is back into its consolidation pattern and no longer in a breakout mode.