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Cupnhandle

Possible BOIL Cup and Handle in formation ENERGY PLAY LONGBOIL could be setting up a long continuation trade Now working on the handle. MACD shows the lines crossed while under the histogram is very often an excellent sign. Time will tell- My preferred trade will be call options expiring in late January or February. ( This is a triple-leveraged natural gas play with the upcoming winter heating season expected to be expensive especially in Europe. The inverse is KOLD which would be a good put option right now.) AMEX:BOIL
AMEX:BOILLong
by AwesomeAvani
Acuity Brands Cup and Handle Pattern Acuity Brands, Inc (AYI) is an industrial technology company. They provide lighting and building management solutions in North America and internationally. The company was incorporated in 2001 and is headquartered in Atlanta, Georgia. AYI is a component of the S&P 400 Mid Cap Index Market Cap: 5.968B Beta (5Y Monthly): 1.54 PE Ratio (TTM): 16.75 Average Volume: 277,357 (1) Cup and Handle (Bull Market Stats): Overall performance rank (1 is best): 3 out of 39 Breakeven failure rate: 5% Average rise: 54% Throwback rate: 62% Percentage meeting price target: The above numbers are based on 913 perfect trades. (2) AYI Daily Volatility (Standard deviation YTD): 2.20% Annualized Volatility (Standard Deviation YTD): 34.24% S&P 400 Mid Cap Index Daily Volatility (Standard deviation YTD): 1.59% Annualized Volatility (Standard Deviation YTD): 24.76% (The above were calculated using historical data) The data above shows the daily and annualized volatility for AYI and the index it is a component of. As you can see AYI has a higher daily and annualized volatility. This can be good or bad. Depending on the way the stock goes and your position. For this pattern, I would say this is a good thing - the pattern requires volatility to breakout and reach the price target. AYI has formed a cup and handle chart pattern. This pattern, as the name suggests, looks like the top ridge of a cup and the handle. The pattern forms as follows: price rise - left peak forms - price goes down at an angle and forms a trough - price rises again at an angle to form a peak. Sometimes, as in this case, the right peak may form a flag/consolidation pattern as well. The blue line on the chart above represents a line of support for the stock. The red box represents what could possibly be a previous cup and handle position. However, in this pattern and the one on the right, I'm not that convinced of their authenticity. The price rise before the pattern formations is not that convincing. I would ideally like to see an upwards trend for at least 3 months. The price has been in a downward trend YTD and then moving horizontally for nearly six months. However, this horizontal movement may be useful - if there is a upward breakout, the momentum could be strong. Cup and handle patterns are ranked 3/34 patterns - meaning when done right, the pattern can bring good performance. The Breakeven failure rate is 5% which is low and hence a good signal. The Throwback rate is 62% which may be a concern. Especially if the pattern is not that strong - as in this case. Totaling this all together, I would give this pattern a rating is 3/5. The ROI may not seem sufficient to justify a long position. Henceforth this is a riskier position. The main issues are: A previous cup and handle position formed before that did not breakout Lack of a strong upwards trend before the pattern formation The pattern duration is around 10 weeks. This is within the range of ideal 7 - 65 weeks, albeit at the lower end of the spectrum. The price target is the difference between the right peak and trough * the percentage meeting price above: $204.54 From the current price that represents a 9.13% ROI. Macroeconomic considerations: Interest rates are rising and so will inflation. We are most likely already in a recession. I would not be concerned about this for this trading idea. This will most likely be a short-term trade for a couple of weeks once the stock breaks out with a close above the trendline. Fundamental analysis: Since this will be a short-term trade, I did not find the need to include any further research- the next earnings is not until January so no concerns. References: 1 finance.yahoo.com/quote/AYI ​2 thepatternsite.com/cup.html
NYSE:AYILong
by BlackbearTrader
INMD - potential Cup & HandleINMD seem to be a great study on chart patterns and fibonacci retracements! :) The stock first broke out from an Adam & Eve neckline @ 27.20 on 13 July, propelled 42% from here to a high of $38.76 (which was a 50% retracement up of the intermediate downswing AB). It then lost momentum and started a steep pull back, finding support only around 61.8% fib retracement of the recent upswing AB. This steep retracement and subsequent action is beginning to shape into a potential Cup & Handle pattern (a pattern which is a lengthy "pause/consolidation" in a prior uptrend). With earnings round the corner (expected on 3 Nov), will it be the catalyst that propel the stock to successfully break up from this C&H formation? If and when it does, we will have a golden cross (20day MA crossing above 50day MA) as well. Nothing is guaranteed so we can only wait and see! LOL. Earnings can swing both ways although the strong volume accumulation on 13 Oct seem to suggest expectations are to the upside. If and when the stock breaks up, then it further consolidates the stock's recovery is well underway (even if it might still be volatile). Long @ breakup or at first initial pullback towards C&H neckline Initial stop loss with be at most recent pivot low (C&H's "handle's" low) Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:INMDLong
by Juliac
2
#3 Bullish Pattern: Cup and HandleRanked at #3 in the Bullish Pattern series is the Cup and Handle Pattern. Cup and handle pattern typically takes many months to form but the pattern is unmistakable similar to a cup with a handle. The pattern begins with a sell off with volume, tapering off and remaining flat before volume picks up and forms the right side of the cup. There are 2 types of Cup and Handles. U shaped -A longer, flatter bottoms provide stronger signal. V shaped - V quickly recovers, should be avoided. Handles decline can be up to 1/3 of the cups right side with traditional handle performing a test at the 50% retracement level. The price target is calculated using the bottom of the cup and the handles breakout. In the case of CHWY, the breakout to the price target is nearly complete (may already be in at 52). The next bullish pattern is #4 The Bull Flag
NYSE:CHWYLong
by SPYvsGME
7