TRHC WCA - Cup and Handle Pattern Company: Tabula Rasa HealthCare, Inc.
Ticker: TRHC
Exchange: NASDAQ
Sector: Healthcare
Introduction:
Hello, traders and investors! Today we are analyzing Tabula Rasa HealthCare Inc (TRHC) on the weekly scale chart. We'll specifically be observing a classic price pattern known as a cup and handle, which may serve as a bottom reversal.
Cup and Handle Pattern:
The cup and handle is a reversal pattern that can act as bullish continuation aswell. It signifies a period of consolidation followed by a breakout. It resembles the shape of a tea cup and can indicate a strong buy signal when correctly identified.
Analysis:
Tabula Rasa's price chart was previously characterized by a clear downtrend, represented by a blue diagonal resistance line. Now, it seems to be forming a cup and handle pattern with a clear horizontal resistance at $6.51.
However, the 200 EMA is currently pointing towards a bearish environment, which raises some doubts about a bullish setup. Despite this, a breakout above the horizontal resistance could open up the possibility of a long position, albeit with a smaller position size due to the current bearish indication.
In the event of a valid breakout, our estimated price target stands at $10.80. This corresponds to a potential increase of approximately 66.24%. Thus, Tabula Rasa HealthCare qualifies as a watchlist candidate, albeit one that requires caution.
Conclusion:
The weekly chart for Tabula Rasa HealthCare Inc reveals a potential cup and handle pattern, which may serve as a bottom reversal. However, the current bearish environment suggested by the 200 EMA calls for caution. A valid breakout above the pattern's resistance could offer a long position opportunity.
As always, please conduct your own due diligence and consider risk management strategies before making any trading decisions.
Thank you for joining this analysis. If you found it useful, please like, share, and follow for more market insights. Happy trading!
Best regards,
Karim Subhieh
