KNC to $40???I'm not a huge fan of making pattern trades without utilizing other technical indicators but KNC could be doing something very interesting here.
1) Like I said, not a huge pattern only trader, but when you see something like massive cup and handle formation on the weekly like we see with KNC, it definitely peaks my interest, as the longer timeframes have more credibility in their analysis.
2) another thing that supports this cup and handle is our rejections from the key zone of resistance, marked by the red box, have been becoming less and less. The more we test a zone of resistance or support the higher likelihood we will break it
3) If we extrapolate the cup and handle data the price target for KNC is right around $40 which would be a MASSIVE gain.
4) A move up to $40 would require KNC to have quite a high market cap but it isn't impossible, so expect we actually top out a bit lower than that, maybe around the $25-30 region.
5) Remember, this is not financial advice and always do your own analysis/research before making any decisions on the market.
