Cup & Handle potential breakout pattern
Updated
Although CAKE experiencing slight local downward pressure at the moment, we have formed a cup and handle breakout pattern with a good volume profile. Currently the Energy in the 90m & 12h are higher than the Green EMA indicating downward pressure, we have seen the Red RSI and Blue LSMA turn back up and cross above 50, as a result of the Blue LSMA turning back up at this level, it is likely that the BBs can continue to expand, we would like to see the Green EMA get higher than the Energy in this TF. The Red RSI in the 12h has also just crossed above 50 and is currently making a bullish cross above the Blue LSMA, it would be good to close like this in 5 hours.
In the daily we have also seen the Red RSI close making contact with the Green EMA as it rises and as a result the Energy is crossing above level 50.
The Green EMA getting above the Energy in the 90 & 12h will in my opinion provide a good indication of reversal to sustained upward pressure and set the conditions for the continuation of this breakout move.
As mentioned in previous publications, these markets can change with very little notice. These changes initially manifest themselves in the lower timeframes and propagate up through the timeframes. Nothing is set in stone. Unless you are day trading, you cannot benefit from these early warning signals.
As always - this is not financial advice but just my view of current market dynamics.
One has to be aware that analyses are done on the basis of what the indicators are saying at the time and things can change. It is important to always monitor the scalping group of timeframes as we will see changes propagate up from there.
If you got value from this analysis, please hit the like button
Trade safe
aBL
In the daily we have also seen the Red RSI close making contact with the Green EMA as it rises and as a result the Energy is crossing above level 50.
The Green EMA getting above the Energy in the 90 & 12h will in my opinion provide a good indication of reversal to sustained upward pressure and set the conditions for the continuation of this breakout move.
As mentioned in previous publications, these markets can change with very little notice. These changes initially manifest themselves in the lower timeframes and propagate up through the timeframes. Nothing is set in stone. Unless you are day trading, you cannot benefit from these early warning signals.
As always - this is not financial advice but just my view of current market dynamics.
One has to be aware that analyses are done on the basis of what the indicators are saying at the time and things can change. It is important to always monitor the scalping group of timeframes as we will see changes propagate up from there.
If you got value from this analysis, please hit the like button
Trade safe
aBL
Note
Just a quick update:As previously mentioned there is limited information to provide much more than a short term analysis using the Phoenix indicators.
In the Short Term group of timeframes: (90m, 3h, 6h, 12h)
The Green EMA is higher than the Energy in all but the 90m where it's close and looks as if the Green will get above having gone up strong with the Energy. The Red RSI has also turned back up and is now above 50 and likely to close like this in 15m. As a result we are seeing the price action between the Aqua/Orange upper BBs, during this period of upward pressure, while the Red RSI & the Blue LSMA are above 50 we are likely to see the price action remain with the candle bodies sitting for the most part between the Aqua/Orange upper BBs and wicking up to the Red upper.
Note
In the 3h the Red RSI and Blue LSMA are both beginning to turn up and have made contact with the Green as it rises indicating bullish sentiment. Also in this timeframe we are likely to see the price action sit predominantly between the Aqua/Orange upper BBs. Although the Energy is close to level 50 in the 6h, the Green EMA seems to be wanting to turn back up and we can imo see the Energy turn back up before crossing below 50, if it does, it may only dip below slightly. We can see similar bullish sentiment in the 12h and the Blue LSMA has turned back up, as a result we have seen the Bollinger Bands expand, as this expansion continues, we are likely to see the price action to continue accelerating to the upside as the price action remains predominantly between the Aqua/Orange upper BBs. In the daily the Red RSI has turned back up and closed making contact with the Green EMA as it rises.In summary:
All looking good for continuation of the break out move
Note
Just to confirm as expected we have now seen the Energy fall below the Green EMA further confirming bullish sentiment as discussed. The Green EMA is now higher than the Energy in all the Short Term group of timeframes. We have seen the Energy drop slightly below 50 in the 6h but considering what I can see in the other timeframes it is still my opinion that this will only be a slight dip.Note
Just a very quick update - will try and add more laterDespite a short period of downward pressure, IMO upward pressure should resume.
The Green EMA is still higher than the Energy in the short term group of timeframes and the daily.
Indications are that we are likely to see higher lows and higher highs
Trade closed: target reached
Despite target being reached we remain very bullish.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.