This massive Cup and Handle is looking pretty good!
A proper handle was printed out the past few days with good angle, and now the price is currently headed for the top to see what sort of breakout we can muster up. Price is sitting in a bull flag as I write this, and a breakout of the shown inverted H&S pattern aligns perfectly with the C&H breakout.
A few issues to watch for:
- This is not a textbook example of a Cup and Handle pattern because the depth of the cup is well over 1/3 of the total value. Not sure if this is made irrelevant by the fact that this is a new market, and the C&H pattern is about half of the total life of the coin.
- There are 3 bearish divergences that I can see on the 4h chart. 2 of them are easily dismissed in my opinion. The 3rd is the divergence from the peak of the left top of the cup to the right, which is a little more worrisome. This may be correlated with the cup depth issue, meaning after retracing this 60% dive to the bottom of the cup, the buying force we are seeing will be thinned out by the time we test the top. The current consolidation we are sitting in will help correct this, but whether it is enough to build the momentum for a breakout, I can't even guess. If we make a right shoulder for that inverted H&S, that pullback would increase our chances of a successful breakout.
- We just powered into the final Fibonacci zone. Watch out for a quick rejection from this zone.
All that said, I, for one, will be buying on a breakout.
Cheers!
-B
*This is not advice to trade. You do not want my advice.
A proper handle was printed out the past few days with good angle, and now the price is currently headed for the top to see what sort of breakout we can muster up. Price is sitting in a bull flag as I write this, and a breakout of the shown inverted H&S pattern aligns perfectly with the C&H breakout.
A few issues to watch for:
- This is not a textbook example of a Cup and Handle pattern because the depth of the cup is well over 1/3 of the total value. Not sure if this is made irrelevant by the fact that this is a new market, and the C&H pattern is about half of the total life of the coin.
- There are 3 bearish divergences that I can see on the 4h chart. 2 of them are easily dismissed in my opinion. The 3rd is the divergence from the peak of the left top of the cup to the right, which is a little more worrisome. This may be correlated with the cup depth issue, meaning after retracing this 60% dive to the bottom of the cup, the buying force we are seeing will be thinned out by the time we test the top. The current consolidation we are sitting in will help correct this, but whether it is enough to build the momentum for a breakout, I can't even guess. If we make a right shoulder for that inverted H&S, that pullback would increase our chances of a successful breakout.
- We just powered into the final Fibonacci zone. Watch out for a quick rejection from this zone.
All that said, I, for one, will be buying on a breakout.
Cheers!
-B
*This is not advice to trade. You do not want my advice.