Mid-term formation of textbook cup and handle pattern (bullish continuation pattern), with current 'handle' phase indicating consolidation prior to a likely breakout. Once the current price level breaks out above the 'handle' resistance level, be quick to put your buy orders in before this intergalactic mission gets underway!
[u]Analysis[/u]
Initial upward trend topping out at A in October at 11248 sat's
Reversal of trend, in long 'U' shape formation
Significant volume increase throughout December led to the 'bottoming out' of the cup
Cup formation complete (B to C) with high of 9500 sat's reached on 09/01/2018
Reversal of trend in a clear 'handle' formation, and the downward trend evident in the BBW indicates the current phase of price consolidation
Price has tested the upper handle resistance twice (C to D) and once the price level has broken through, a potential buy zone will open up. The buy zone for this pattern is typically the zone between the upper handle resistance and the cup price level (C).
Once this buy zone is reached, the cup and handle pattern indicates that a breakout is likely.
Kommentar
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Price drop associated with handle is deeper than expected. Still expect this to progress once market bottoms out this week.