See above chart, set stop loss at $42 to limit the risk. Great up-side potential with little risk.
Source: Cup and Handle Blog
See above chart, set stop loss at $42 to limit the risk. Great up-side potential with little risk.
Source: Cup and Handle Blog
damianoakley
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Hi istock,
Sorry - I trade U.S. Stocks every day, and I can't agree with either of your suggestions made above.
If you are going to employ the "Cup & Handle Pattern", then it is best used on companies with strong fundamentals that are breaking into new highs..........neither of the stocks above fits this criteria.
In my view, instead of BYD, PNK is a much stronger stock in this particular sector (Gaming) on a break through $34. And instead of MIND, RBN is much stronger in the Capital Goods sector on a break through $43.
The Cup & Handle price pattern is normally used as part of the CANSLIM stock selection method written by William O'Neil. I'm not saying that your selections are duffers, but you are likely to hit overhead resistance after you buy these stocks. There are better stronger companies you could be buying into.
Thanks
Damian
Sorry - I trade U.S. Stocks every day, and I can't agree with either of your suggestions made above.
If you are going to employ the "Cup & Handle Pattern", then it is best used on companies with strong fundamentals that are breaking into new highs..........neither of the stocks above fits this criteria.
In my view, instead of BYD, PNK is a much stronger stock in this particular sector (Gaming) on a break through $34. And instead of MIND, RBN is much stronger in the Capital Goods sector on a break through $43.
The Cup & Handle price pattern is normally used as part of the CANSLIM stock selection method written by William O'Neil. I'm not saying that your selections are duffers, but you are likely to hit overhead resistance after you buy these stocks. There are better stronger companies you could be buying into.
Thanks
Damian