To The Moon

This is an educational piece. When it comes to stock investment, I always keep an eye out for the cup-and-handle pattern. It's one of my favourite and most reliable patterns.

Cup and handle pattern

A cup-and-handle pattern is a bullish continuation pattern where the price forms a rounded "cup" followed by a smaller consolidation or "handle." Once the price breaks above the resistance at the rim of the cup, it typically signals strong bullish momentum with the potential for a significant upward move.

AAPL cup and handle pattern

How to Measure the Target Price of a Cup-and-Handle Pattern:

Calculation of cup and handle target price

1. Measure the Depth of the Cup:

   Find the distance between the lowest point of the cup and the breakout level (rim of the cup).

2. In the attached chart:Breakout level = $199.56

3. Lowest point of the cup = ~$164.42

4. Depth = $199.56 - $164.42 = $35

5. Add the Depth to the Breakout Level:

   Target Price = Breakout Level + DepthTarget = $199.56 + $35 = $234.56

Target Price for AAPL Based on the Chart:

The target price for this cup-and-handle breakout is $234.56. Highest reached was 237 and subsequently price dropped.

Apple has a cup and handle pattern now. What is the calculated target price?

Current price chart of AAPL

From the chart, we can estimate the following:

• Cup High: Approximately $237.42

• Handle Height: Approximately $237.42 - $196.49 = $38.07

Calculating the Target Price:

Target Price = $237.42 + $38.07 = $275.49

Short-term trading on AAPL

Refer to this link on AAPL DLCs: https://dlc.socgen.com/en/product/search/ucode/aapl/type/

AAPL DLCs

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This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.