Hi
In answering Resurgam question about a possible double top I decided to expand on my pervious SMN cup and handle chart posts as well.
As to a double top I will never say never, but very unlikely, I expected that there could be resistance around 0.77 which is natural as some may see it as an opportunity to take profits (so yes a possible pull back), Some buyers who got in at the high 30s and 40s will naturally take some profits. That's usually from weaker holders.
If you followed my earlier charting posts on this thread about the first small (a) cup and handle pattern forming. Your will see that we have successfully formed the (a) cup and then formed the (a) handle. The breakout will occur once we close for a couple of days above 0.775.
I have attached and expanded view of a rough road map chart that
I would not be surprised if it played out. Where I have attached the various target labels and lines is purely speculative as far as the time line goes. Achieving the each target could take longer , who knows?
As you can see from the chart I am first looking for a breakout above 0.775 , then I expect we will make our way to the 1st break out target ( high 80s - low 90s), Then I expecting another profit taking pull back. Then once trading above the 1st breakout high making it way to the (b) cup right lip (roughly around the mid 1.10s).
With the cup formed we need a (b) handle before progressing upwards again, so more profit taking with a serious pull back to form the (b) handle.
Once we close above the (b) right lip we are on our way to another breakout.
We shall see.
Just the way I deal with the markets so that I am not surprised by what plays out , as always DYOR.
cheers Lies
(20min delay)