could be a c&h pattern, breakout target >60c

I believe CAP could be developing the infamously over advertised, but nevertheless prominent, Cup and Handle pattern. Basically it is a continuation pattern of the prior trend, which was clearly upwards throughout June and July. Throughout August/ Early September CAP consolidated in a cup formation and then we broke out up towards the resistance line around 48cents. Since then we have dropped off that resistance line and traded in a 6cent range for about 2 weeks.

Cup and Handle Information

During the past week or two we have been consolidating well and haven't ventured back into the 30s like we have in the past. Although we dropped a bit today, it's just a bit of moderate volume profit taking in my opinion. The stochastics and RSI were in overbought territory throughout the week and it might take a day or two next week for them to return into the safe buy zone. However if you compare today's 6% drop to what could be around the corner, it will seem like small change. Here's what I'm seeing. It looks very bullish if this plays out to the upside. Remember that news is just around the corner, and positive results at Hawsons could coincide with a breakout on the chart. Have a look at this chart and decide for yourself.



Just a side note. Congratulations to the MHM holders here, I know there are a few. CAP might not have the Aluminium plant on its side, but I feel a similar rerate is around the corner based on where our tin, iron and coal could take us in the next 12-18 months. Here's hoping!