Cerence Inc.Long
Cup and Handle! Long CRNC
I am bullish on CRNC on the basis of a cup and handle formation that offers an attractive risk/reward. The cup and handle is a bit "broken" only because of a gap-up due to CRNC being added to an index. We have now closed that gap at $109 and it appears that the bullish move is ready to continue. I am eyeing two targets for this trade at the 0.786 fib line and near the previous ATH of $139 where it would likely face resistance.
Other considerations:
1. This move is dependent on growth stocks, so if Treasury yields rebound and it forces a risk-off market, this trade will likely fail.
2. Earnings are coming up and as we can see, CRNC is volatile, so expect a sharp move following the report.
TP1: ~$126 (+16%)
TP2: ~$137 (+25%)
Published trade statistics:
Win Percentage: 6/8= 75%
Avg Gain on Wins: 12%
Avg Loss on Losses: -13%
Weighted Avg P/L % : 5.98%
Pending Trades (including this post): 3
- Sultan of Chart
*This is not financial advice*
Other considerations:
1. This move is dependent on growth stocks, so if Treasury yields rebound and it forces a risk-off market, this trade will likely fail.
2. Earnings are coming up and as we can see, CRNC is volatile, so expect a sharp move following the report.
TP1: ~$126 (+16%)
TP2: ~$137 (+25%)
Published trade statistics:
Win Percentage: 6/8= 75%
Avg Gain on Wins: 12%
Avg Loss on Losses: -13%
Weighted Avg P/L % : 5.98%
Pending Trades (including this post): 3
- Sultan of Chart
*This is not financial advice*
Never let the fear of striking out get in your way.
- Sultan of Chart
- Sultan of Chart
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