Tuesday, October 2, 2007

Cup and Handle

Take a look at MasterCard's current chart. Is it time for a breakout? A gap fill?
A Breakout to new highs? All of the above? One thing is certain, the chart looks similar to Google's a few weeks back, before the gap fill, before the breakout, about 60 points ago.

The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. With the financials moving higher, it may be time to pick up a few shares of MA.

Earnings due out October 31, I'm tempted to pick up a few Jan '08 200 call options @ 1.40


John Forman said...

I love the cup and handle. It tends to be a very useful pattern for picking out trades with strong upside. The one thing I would say, though, is that it's not acutally a Candlestick pattern, per se. It's just a chart pattern you can see on a bar chart just as clearly.

Ragin' Cajun said...

Fixed. Thanks John.