Mangalore Chemicals & Fertilizers stock broke out above bullish cup and handle pattern….and seems to be holding that well
What is Cup and Handle Pattern?
The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. As its name implies, there are two parts to the pattern: the cup and the handle. The cup looks like a bowl or rounding bottom. As the cup is completed, a trading range develops on the right hand side and the handle is formed. A subsequent breakout from the handle’s trading range signals a continuation of the prior advance.
Isn’t the below chart of Mangalore Chemicals & Fertilizers resembles cup and handle?
Mangalore Chemicals & Fertilizers Chart
Source: Chartalert.com
As you can see in the chart above: Mangalore Chemicals broke out from cup and handle pattern above 47. It rallied to 55 and then pulled back to 47 and seems to be holding that.
What does this mean?
A breakout above 47 seems to be holding that means a strong upmove quite probable in next few weeks and months. The pattern breakout is bullish and pullback to breakout point looks like a great entry opportunity and that’s what I am pointing to. There is no guarantee. Please do your own due diligence.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers.
