Cup Check
Intermediate-term players have long embraced the cup and handle as the keystone
pattern of the methodology. What many new traders and budding swing traders are
unaware of, however, is that the same pattern formed in a shorter time span,
particularly at new highs, can be a very profitable pattern as well.
12:31:12
Williams-Sonoma (WSM)
is tracing out a running cup and handle at its high. WSM is currently down
0.41 at 37.70 and is holding a 3-month
relative strength ranking of 82 from TradingMarkets.com.
Williams-Sonoma
(
WSM |
Quote |
Chart |
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PowerRating) is performing this action right
now. The trick is to wait for follow through out of the handle to clear the
right side of the cup, as many times this can be the beginning of a fall out of
a double top. Patience to stalk is the key.
Until tomorrow,
Duke