Wednesday, December 15, 2010

Uob-KH Cup and Handle Pattern

Uob-KH closed 1.73 today, this stock is forming a cup and handle pattern. 1) cup is formed 6month old, 2)handle is 1/3 depth of cup. 3) the shape looks like a cup and handle.

It need to break above the resistance 1.81 with volume to consider complete. If break above resistance the profit target will be roughly same as distance between bottom of the cup to right peak of the cup( in short, target ard $2.20). Tomorrow can consider early entry.

Setup for tomorrow: Entry: 1.75, Stoploss 1.62, Timeframe: mid-long term(2week-3month). This stock has very low volume,you might not be able to get big lot size. The trick to buy slowly, and buy in odd numbers 3,5,11,13. Do the abnormal way and you will not alert the Big Boys.

This pattern is not develop by me, i also read from other websites and book. For more info, please do a google search on "cup and handle". Tomorrow going to phuket for holiday, this will be my last post for this week. Cheers~
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