INMD: CUP AND HANDLE PLAY
Nice cup and handle on INMD.
(I'm not looking at fundamentals here, just technicals.)
What's a cup and handle?
A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u" and the handle has a slight downward drift.
A cup and handle is considered a bullish signal extending an uptrend, and is used to spot opportunities to go long. (Definition by Investopedia)
After confirming the cup n handle pattern and breaking the top of the handle, the price is now retesting the breakout point and forming a bull flag. Bull flag formations are found in stocks with strong uptrends and are considered good continuation patterns.
It is therefore a great level to buy with good risk vs reward.
Traders will want to buy the break of the flag with a stop loss below the breakout point.
Whatever the height of the cup is, add that height to the breakout point of the handle and you have your profit target (at around 109).
Note that 100 could act as a psychological level/resistance.
Trade safe.
(I'm not looking at fundamentals here, just technicals.)
What's a cup and handle?
A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u" and the handle has a slight downward drift.
A cup and handle is considered a bullish signal extending an uptrend, and is used to spot opportunities to go long. (Definition by Investopedia)
After confirming the cup n handle pattern and breaking the top of the handle, the price is now retesting the breakout point and forming a bull flag. Bull flag formations are found in stocks with strong uptrends and are considered good continuation patterns.
It is therefore a great level to buy with good risk vs reward.
Traders will want to buy the break of the flag with a stop loss below the breakout point.
Whatever the height of the cup is, add that height to the breakout point of the handle and you have your profit target (at around 109).
Note that 100 could act as a psychological level/resistance.
Trade safe.
Note
After a 4 dollars move, the price came back in the bull flag, very frustrating. Let's see how we close today. The bulls want the price to close above the flag.
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