Mini Cup With Handle in Oracle
Patterns come in all shapes and sizes.
The subjective judgment required in separating the wheat from the chaff is
daunting to many neophyte traders who’d rather look at nicely packaged mechanical
signals. But the market, by nature, is chaotic and by filtering out the noise, you
could be filtering out useful information.
A case in point would be a mini cup with handle that is forming in Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating).
Generally, intermediate-term traders will look for a cup with handle to have a
flat base that extends over the course of 12 weeks or more. This chart does not
fit those criteria.
But the price action is worth following as it unfolds over the next several days.
ORCL is nearing its high out of a two-month base. Intermediate traders will
be waiting to see if ORCL can break out above the top of the base on increasing
volume. Light volume into the close suggests that ORCL made for a handle over
the next few days prior to a breakout attempt.
Market watchers will be especially glued to their monitors as a breakout above
resistance in ORCL will further support the rally we’ve been seeing in the Nasdaq
over the past week. Already, widely watched bellwethers Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating)
and Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) are boosting the Nasdaq by gaining upward momentum off
breakouts to new highs.
See you tomorrow,
Eddie
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