On the left side, You see a Cup and Handle pattern which is one of the most profit-making patterns in the market, while on the right side you see a Double Top which indicates the probability of lower prices in the coming days!
Which one would you pick? in which you will put your money?
Let's look at the volume and see if it could help us:
A: In a cup and handle pattern we need higher volume as prices go higher! which is not present in this case!
Moreover, you need a huge positive fundamental change: -a 10% change in revenue in 2022 Q2 does not support Cup and Handle pattern!
Now let's look at the alternative Double Top pattern:
A: sharp 32% increase in 12 days and 51% rebound from 52 weeks low while volume decreased. B: getting out of consolidation pattern and failed to advance above 123% Fibo twice. C: closing at a lower price and 20% higher volume when testing the 935 level for the second time indicate increased supply!
After this analysis, which scenario would you pick and what would be your reason? best,
none of these up moves in any asset has been on higher volume.
brushenas
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As usual Thanks for the great Analysis Mosh. Can you please provide the name of the book where you get the cup & handle pattern details? Thx in advance
Black_Sheep1
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Trade the correction and invest in the C&H ...lol this will be helpful for a lot of people- nice
I feel we are in consolidation for the next move up - this pattern may play out, just watch the price action-