Potential Cup and Handle Breakout

7 thg 6, 2022

HAL showing a weak cup and handle (low volume on the lows of the cup, and an upward wedging on the lows with regard to the handle). Would've preferred a shakeout on the handle, but instead, we are getting a rising wedge and low volume at the pivot point. Tightening volume at the handle is good, but once it reaches the breakout point, either the breakout is rejected or it will be another breakout without legs, as is the case with a number of names recently

EPS growth is also not looking good, quarterly EPS has not shown significant growth when compared to the quarterly EPS of the previous years. Q4 2021 showed signs of earnings acceleration, but that quickly reversed in Q1 of 2022 (which coincides with the pullback that formed the early part of the base).

Personal Opinion: Breakout is still possible, but I'm not looking to enter a position.