GREY:PGDIF - Post by User
Comment by
ekimon Apr 27, 2015 1:30pm
87 Views
Post# 23668028
RE:.25
RE:.25It looks pretty classic:
DEFINITION of 'Cup and Handle'
A pattern on bar charts resembling a cup with a handle. The cup is in the shape of a "U" and the handle has a slight downward drift. The right-hand side of the pattern has low trading volume. It can be as short as seven weeks and as long as 65 weeks.
As the stock comes up to test the old highs, the stock will incur selling pressure by the people who bought at or near the old high. This selling pressure will make the stock price trade sideways with a tendency towards a downtrend for four days to four weeks... then it takes off.
Hope this is a text book case and I see Cudjo is back in...so that usually means a nice bottom.
LONG...PGD
EKIM