HHC inverted cup and handleHHC is a little low on volume for me to trade but I like the sell/short set-up currently on offer. Price has the potential to fall to just below $104.
There is currently strong support at around $100 (as seen from the weekly chart) and, if price approaches this level, we need to we aware of the weekly 200ma (which may come into play as further support).
On the daily chart, since price reached a high of $160, price has fallen below the daily 200ma with a couple of headfakes. These may have breached the 200ma but they also formed a double top chart pattern (at just above the $150 half figure) so the momentum looked like it would continue to the downside.
A bear move did transpire and more recently an inverted cup and handle formed (and was confirmed with yesterdays bar). As there is no major support to stop price until the $100 zone a measured move from the cup and handle could well materialise. This would take price down to approximately $104 - a possible move of more than 1500 points.
If you are happy to trade stocks with such low volume the set-up on HHC looks good.
Measuredmove
RCL bull flag breaks above $80I last analysed RCL a few weeks ago on the gap up following a cup and handle formation. At the time I recommended a near-term buy (which would've realised a small profit) but to hold off for a longer-term trade.
Since then price has made a new high, pulled back slightly and then yesterday's bar broke out confirming a bullish flag (plus breaking the $80 mark on higher volume). The trend is now reasonably well established and I will look to enter this stock at the next possible opportunity.
APD potential measured move upAPD has been in an uptrend all year but the deep pullbacks have made it too unpredictable to long-term trade so far.
On the daily chart an inverted head and shoulders chart pattern offered an opportunity to trade a measured move up. Since the break of the pivot high (which also confirmed the H&S pattern) there have been two gaps up on slightly higher volume.
This had the potential set-up for an almost $20 move up but, if you missed the first gap, the risk:reward is rapidly declining.
It offers a very good buy for a short-term trade as the momentum is up (with the gap, volume and bullish bar all in the direction of the trend).
But for longer-term traders you may want to now wait for a break above the $150 half figure before looking to trade this one.
YHOO breaks above $50YHOO has not been on my watchlist for many years. I have posted the monthly chart to show why. After reaching it's peak in 2000 ($125) it has struggled to reach its former glory.
But now we can see that a cup and handle has formed. And if price responses with a measured move then we can anticipate a substantial move up (possibly by as much as $30).
On the daily chart price broke through the September pivot high at the end of October. This was the first opportunity to buy into this stock but, despite the monthly cup and handle, more cautious traders may have wanted to wait for price to break through the $50 half-figure.
With this now achieved a pullback (or retest of $50) and subsequent breakout could offer a secondary zone at which to buy.
ENH cup and handle formingENH is not the best looking chart to trade right now but there's a textbook Cup and Handle forming on the weekly chart. Price just need to break the January high of $58.83 to confirm this chart pattern.
Normally a cup and handle is tradable on the breakout but this one has taken almost a year to form so it may be advisable to wait a little longer - rather than getting caught on a fakeout.
Volume is low on this stock, so price action is less predictable than would be expected for a more liquid stock. However, if it can break the resistance and 60 figure, a measured move could see ENH head towards $68.
LMT measured moveLMT put in a motive wave, retraced and then put in another motive wave of the same % move. Frost and Prechter in their book said this is a common occurrence so i've been watching and sure enough here it is.
