Chewy, Inc.Long
#3 Bullish Pattern: Cup and Handle
Ranked at #3 in the Bullish Pattern series is the Cup and Handle Pattern.
Cup and handle pattern typically takes many months to form but the pattern is unmistakable similar to a cup with a handle.
The pattern begins with a sell off with volume, tapering off and remaining flat before volume picks up and forms the right side of the cup.
There are 2 types of Cup and Handles.
U shaped -A longer, flatter bottoms provide stronger signal.
V shaped - V quickly recovers, should be avoided.
Handles decline can be up to 1/3 of the cups right side with traditional handle performing a test at the 50% retracement level.
The price target is calculated using the bottom of the cup and the handles breakout.
In the case of CHWY, the breakout to the price target is nearly complete (may already be in at 52).
The next bullish pattern is #4 The Bull Flag
Cup and handle pattern typically takes many months to form but the pattern is unmistakable similar to a cup with a handle.
The pattern begins with a sell off with volume, tapering off and remaining flat before volume picks up and forms the right side of the cup.
There are 2 types of Cup and Handles.
U shaped -A longer, flatter bottoms provide stronger signal.
V shaped - V quickly recovers, should be avoided.
Handles decline can be up to 1/3 of the cups right side with traditional handle performing a test at the 50% retracement level.
The price target is calculated using the bottom of the cup and the handles breakout.
In the case of CHWY, the breakout to the price target is nearly complete (may already be in at 52).
The next bullish pattern is #4 The Bull Flag
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