Cup and Handle/Rising WedgeEarnings beat.
Conflicting patterns as a cup is bullish and the wedge is bearish. Rising wedges are not valid until the bottom line is broken, so this wedge is not valid as of yet.
Rising wedges can also break to the upside which this one did. Some would say a RW is caused by FOMO.
It exhibits too much excitement and it causes too much supply. When price comes back down to break the wedge, there will be excessive selling but not until then.
I have not seen a RW that was not eventually broken but they can be a long term pattern depending on market sentiment.
The cup reached EL (long entry) level with the earnings beat. Targets for a cup are calculated using the depth of the cup. T1 has been reached. Targets calculated but the rising wedge could mess with this cup and cause a throwback. This is a large Rising Wedge (RW). It remains to be seen.
There is a falling wedge at the bottom of the cup. This is opposite of a RW. Both lines slope down and converge at the apex. A Falling Wedge is bullish when the top line is broken.
No recommendation
