TATA CONSUMER | CUP & HANDLE PATTERN | WITH EXPLANATION

3 thg 4, 2022

Let's first talk about the conditions for CUP & HANDLE PATTERN:

• Cup patterns can last from 7 weeks to as long as 65 weeks, but most of them last for 3 to 6 months. ✅
  
• The usual correction from the absolute peak(the top of the cup) to the low point of this price pattern varies from around the12 to 15% to upward of 33%.✅
  
• The bottom part of the cup should be rounded and give the appearance of a "U" rather than a very narrow "V".✅
  
• The formation of the handle area generally takes more than 1 or 2 weeks. ✅
  
• Volume may dry up noticeably near the lows in the handle's price pullback phase.✅
  
• The handle should also be above the stock 10-week moving average price line.✅
  
• When a stock forms a proper cup-with-handle chart pattern and then charges through an upside buy point, which Jesse Livermore referred to as the "pivot point" or "line of resistance", the day's volume should increase at least 40-50%. ✅
  
• Nearly all proper bases will show a dramatic drying up of volume for one or two weeks along the very low of the base pattern and in the low area of few last weeks of the handle. ✅
  

According to the pattern, the price target is 890, but as a safe trader, I would consider the first target to be 850 because there might be a possibility of a triple top, and I would reduce my position sizing to half as it reaches 850, and would add as it breaks 850-855 level.

Stoploss - 750

Disclaimer: The analysis is for educational purposes. Please do your due diligence before making decisions.

3 thg 4, 2022

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21 thg 8, 2022

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