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Cup And Handle

Technical Analysis of the Cuphead patternThe current setup presents a classic cup-and-handle pattern, visually resembling the shape of a " Cuphead " character. This structure typically indicates a bullish continuation, as it forms after a period of consolidation within a broader uptrend. Cup Formation: Left Side of Cup: The pattern began after a pullback from recent highs, creating the initial drop and rounding bottom, representing the "body" of the cup (or "Cuphead's" round head). Base of Cup: The support level at the bottom is significant, where volume likely decreased, indicating seller exhaustion and setting a strong foundation. Right Side of Cup: Price begins to rise again, completing the rounded shape and signaling a renewed bullish sentiment as buyers regain control. Handle Formation: Handle Decline: The handle forms as a slight pullback from the right side of the cup, usually about one-third of the cup's height. It indicates a final consolidation before a breakout and serves as "Cuphead’s" handle. Handle Length: The handle length should not exceed half the cup's height, as longer handles might signify weakening bullish momentum. Volume Analysis: Look for decreasing volume during the handle formation, indicating weaker selling pressure, with an increase in volume as the breakout starts. Breakout & Price Targeting: Entry and Confirmation: A breakout above the handle’s resistance confirms entry into a long position, with a volume surge as buyers push the price upward. Price Targets: First Take Profit: At 100% profit, calculated based on the initial entry price and set to secure gains once the target is reached. Second Take Profit at Cycle Highs: For further gains, the final target is set at cycle highs, leveraging the bullish momentum and trend continuation. Risk Management: Stop-Loss Placement: A conservative stop-loss can be set slightly below the handle’s low to protect against unexpected reversals while allowing some room for price fluctuations. Trend Monitoring: Keep an eye on volume and candlestick patterns post-breakout to ensure continued bullish momentum, adjusting stops accordingly to lock in profits.
Long
by cheerfulSnail40093
2
Palantir, expecting retracementPalantir uptrend move from June 2024 so far has been incredible. But I think enough is enough! Palantir broke out of its "cup and handle" pattern in mid June and already hit its target at about 50$ per share. The stock price is currently standing at 58$ per share, which is surpassing its cup and handle target and even 4.76 Fibbonaci extension level. I believe we will see a retracement to around 50$ per share soon. We also see that the when RSI indicator is at these elevated levels, there is usually a retracement or sideways price action.
P
by Mo_reza_kaz
SOFI ($SOFI) BANK: A FULL TECHNICAL & FUNDAMENTAL ANALYSIS! BUY!NASDAQ:SOFI SOFI BANK: A FULL TECHNICAL & FUNDAMENTAL ANALYSIS! Here is what we are going to deep dive into in this video: 1.) Review Sofi's earnings report from this morning 2.) What SOFI's charts are telling us, using my "High Five Setup" trading strategy 3.) A look at the fundamentals of the company and what score /6 SOFI received on my "Valuation Pro Analyzer" Let me know what you think of my analysis in the comments below. What stocks do you want to see next through my strategies and tools? Did you buy the dip on NASDAQ:SOFI ? LIKE l FOLLOW l SHARE Not financial advice.
NASDAQ:SOFILong
by RonnieV29
Silver a win-winMy positioning Anyone who's been following me for a while knows I've been quite bullish on silver for the past few years. In fact, I initiated my AMEX:SLV position in early 2021 when it was in the low 20's and then in late 2022 I rotated almost 50% of that position into AMEX:SILJ when it was right around $8. It was mostly dumb luck but I nearly bottom ticked that market and bought within an hour or so of what's become a multi-year low. I've continued to hold these two core long term positions, while also trading around the core positions when short term setups present themselves. The win-win Before I get into the chart technicals I want to get into the fundamentals that I think make silver a win-win in the long term. I typically don't use fundamentals when I trade but I don't consider this a typical in-and-out trade. This is more of a long-term hold based on my own fundamental thesis and supported by chart technicals. The crux of my win-win thesis is that silver will outperform in both a bullish economic outcome and a bearish economic outcome. In the bullish economic scenario, the already voracious global silver demand will continue to increase as solar, AI and EV demand continues to grow. The question at this point isn't if, but how fast. The rate at which silver is being consumed could outstrip production by as much as 200moz by the end of this decade. While I expect scrap and new mining to somewhat fill that gap, it will eventually create a vacuum that only an increase in price will resolve. In the bearish scenario the globe slips into a severe recession. This would cause industrial use of silver to plummet but safe haven demand for silver to explode. While the demand in the bullish scenario is more gradual, the demand in the bearish silver is explosive and would likely lead to a hockey stick price move. The most bearish scenario for silver is that the globe goes into a mild recession, where demand for silver drops materially but the large safe haven demand doesn't materialize as it would in a severe recession. In this case silver may tread water and bounce around in range. The technicals The silver chart makes just as compelling of a case as the fundamentals. Silver has what Peter Brandt has affectionately referred to as "the mother of all cup and handles". While the 45 year pattern means this could take quite a long time to play out (years...decades?) it still offers a very nice long term potential and clear boundaries to trade within. Within this very large pattern we often see shorter timeframe patterns form that offer both long and short setups. This sets up a nice situation where you can have a long term core position, and then trade around that core position when shorter term setups present themselves, either long or short. The next few key support and resistance levels I'll be looking to trade around is the $40 level and the $48 level. Beyond that and we'll be into all-time-high territory where I'll trade whatever price action happens to be at that point in time. Options Another nice thing about SLV is it gives us options (no pun intended). For a scenario where I'm long term bullish but I think price has rallied too far, too fast and it's looking a little frothy in the short term, rather than closing some of my spot position outright and risk missing out on further rallying another approach is to sell OTM (out-of-the-money) covered calls. Implied volatility would be elevated so you'd likely be getting paid a good premium, and if price does rally up to or beyond your strike price, then you can either choose to hold and let your shares potentially be called away or if your still bullish you can roll the options up and out (up in strike and out in time). You'll collect more premium and move your sell point to a higher price at the cost of taking on more time risk. There are exhaustive resources out there if you're unfamiliar but interested in this type of strategy.
TVC:SILVERLong
by krugman87