Charts, page-4427

Hey mate - patterns are fractal in nature and can be seen on all time frames.
Regarding the current snap-shot I don't feel there is enough data (candles) to make any claims of what is shaping up. With these cup and handles you want contraction in price (Minervini labels it 'VCP' or Volatility Contraction Pattern) which is a sign that one side has been absorbed by the other. Statistically these periods of dormancy are followed by an proportionately large move.

I'd want to see more compression over a longer period of time before confidently trading that type of a setup (but that's just me). Further more the price is inside what I would term to be noise on a higher time frame.





I felt a few weeks back that price needed to consolidate and a few days later the revenue announcement came out. The move that followed generally dictates that you can ignore a lot of the previous analysis as this new information re-rates the stock. The move was generally retail lead combined with short covering in my view - not institutional buying.

With that said I think a bottom is in and there are tradeable setups present. I got a weekly signal, albeit weak, and am stalking an entry on the lower time frames. I'm waiting to see how price respects 10, 20 and 50emas. Past behavior is important when deciding on the context of your setups.





So it's a wait and see for me. Maybe it reaches down to that trend line as support and trend channel traders step back in. Or maybe traders who like to trade around the emas will step in should they see good volume which could be larger traders who like to accumulate around these averages. Or maybe the shorts will have one last stab at pushing price down to knock out all the stops where the liquidity lies.

Basically you have to be nimble and execute with some conviction based on what you see and believe about the markets. The entry is about 10% of a strategy, where the setup model could be any number of components like fundamentals (Buffet uses fundamentals as his setup and doesn't worry too much about entry as his belief is that price mean reverts to it's true value), index performance, or a myriad of other things.