GIGM DCA - Cup and Handle PatternCompany: GigaMedia Limited
Ticker: GIGM
Exchange: NASDAQ
Sector: Technology
Introduction:
Hello everyone, today we are focusing on GigaMedia Limited (GIGM), analyzing its Daily scale chart on the NASDAQ exchange. The price chart has caught our attention due to the formation of a bottom pattern, specifically, a cup and handle, which has been developing over the past 270 days.
Cup and Handle Pattern:
The cup and handle pattern is typically a bullish reversal pattern signifying a period of consolidation followed by a breakout. As the name suggests, it resembles a cup with a handle.
Analysis:
GigaMedia's price chart has been in a downtrend, as indicated by the blue diagonal resistance line. However, the formation of a cup and handle pattern suggests a potential reversal of this trend. The price is currently attempting to surpass the 200 EMA, and the horizontal resistance stands at $1.62.
If a breakout above this resistance level occurs, a long position could be considered. Our projected price target in this case would be $2.12, which corresponds to a potential price increase of approximately 30.74%.
Conclusion:
The daily chart for GigaMedia Limited suggests a potential bottom reversal with the formation of a cup and handle pattern. A breakout above the pattern's resistance could present a viable long position opportunity.
As always, remember to conduct your own research and consider your risk management strategies before making investment decisions.
Thank you for tuning into this analysis. If you found it informative, please like, share, and follow for more updates. Happy trading!
Best regards,
Karim Subhieh
