【Thursday Special】Could You Find Cup and Handle Pattern?
Welcome to Thursday Special!
Whether you are a beginner or an experienced investor, everyone has their own opinions on the stock market trends. How do you make these judgments?
Let's start a series of learning patterns and apply them to individual stock trends.
Could you guess which stock this is based on the following trend?
BINGO!
It's NVIDIA!!! $NVIDIA Corp(NVDA)$
Can you spot the CUP and HANDLE in this pic?
What Is a Cup and Handle Pattern?
It looks like a teacup with a handle, indicating a signal that the stock price is resuming an upward trend after a period of consolidation and pullback. The essential characteristics of the cup and handle pattern are as follows:
approximately 1-3 months before the “cup” pattern begins, the stock will reach a new high in an uptrend.
the stock will retrace, dropping no more than 50% of the previous high creating a rounding bottom.
the stock will rebound to its previous high but subsequently decline, forming the “handle” part of the formation.
the stock breaks out again, surpassing its highs that are equal to the depth of the cup’s low point.
💭So, today's homework is to find a stock with a cup and handle pattern!
Please take a screenshot and highlight the cup and handle pattern.
For example:
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🌟🌟🌟$Pinduoduo Inc.(PDD)$
has a Cup and Handle pattern that is considered a bullish sign, extending an uptrend. Pinduoduo share price jumped 15% on August 29 as it delivered an amazing 2nd quarter earnings report. Pinduoduo delivered 66% year on year growth in revenue and 42% jump in non GAAP net income.
Pinduoduo is now the 3rd largest ECommerce company after $Alibaba(BABA)$ and $JD.com(JD)$ . It also owns Duoduo Grocery and Temu which will continue to drive its exponential growth in the future.
Performance wise, Pinduoduo is up 14% year todate. At the current price of USD 96.61 I believe it is undervalued. Pinduoduo ticks all the hallmarks of quality stock. It has been profitable for the last 2 years, has a solid balance sheet and an excellent management team.
@MillionaireTiger
$Micron Technology(MU)$ may not always be in the limelight, but a closer look reveals a compelling investment opportunity. Despite challenges in fiscal Q2 2023, there's a pattern emerging that suggests Micron's future could be brighter than many realize.
Micron recently reported Q2 2023 results that might seem mixed at first glance. Revenue was $3.69 billion, slightly lower than the previous quarter and year-on-year figures. The company reported a net loss of $2.31 billion, or $2.12 per diluted share. However, a significant part of this loss was due to a non-recurring inventory write-down of $1.43 billion, or $1.34 per diluted share. This is not indicative of the company's core operations.
Micron is actively investing in technology to stay competitive, particularly in memory and storage solutions. The CEO, Sanjay Mehrotra, expressed confidence in long-term demand, and signs of improvement in customer inventories indicate potential for a positive turnaround.
What's intriguing about Micron's potential is the cup and handle pattern. This bullish signal suggests an extension of the uptrend. After a classic pullback pattern, the handle usually finds support at the 50% retracement level before rallying back to test the previous high. Currently, Micron shows a bounce from the 50% retracement level, signaling the potential for this formation to follow through.
$Micron Technology(MU)$ might not grab headlines, but it's showing signs of a promising future with the cup and handle pattern. This, coupled with the semiconductor industry's growth and demand, positions Micron well for potential upside.
Please note that this post reflects personal opinions and should not be considered financial advice. Thorough research is essential before making any investment decisions.
Follow @MillionaireTiger
它看起来像一个带手柄的茶杯，表明股价在经过一段时间的盘整和回调后正在恢复上升趋势。杯柄图案的基本特征如下：
大约在“杯子”形态开始前1-3个月，股票将在上升趋势中达到新高。
该股将回撤，跌幅不超过前一高点的50%，形成一个圆形底部。
该股将反弹至前期高点，但随后下跌，形成“手柄”部分的形成。
股票再次突破，超过其高点，等于杯子低点的深度。
$小米集团-W(01810)$