emark,
have a read of this link on cup and handle. RCH is a classic example.
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:cup_with_handle
a couple of points.
1. handle can retrace up to 1/3 of cup depth. By my calculations that is exactly 4.8c which is also that old support/resistance line that tibbs referred to.
2. handles typically take 1-4 weeks to form. I guess for the impatient that is the bad news.
3. Now the good news. Tibbs states his immediate target is 6.8c but by my calcs it is more like 7.7c. This statement is lifted from the above link....
"Target: The projected advance after breakout can be estimated by measuring the distance from the right peak of the cup to the bottom of the cup."
peak as seen yesterday and again today was 5.5c. bottom of cup was 3.3c on 25th march. bottom to peak is therefore 2.2c. add that to the right hand peak of 5.5c and you get 7.7c
I welcome other interpretations.
RCH
richfield group limited
