re-testing breakout level of cup with handle

Let's take a look at the hourly chart of PRW to better understand its current price movements. ( Chart was captured at around 12 noon today).

1. Price has been pulling back -this could be inferred earlier from the negative divergence between the price and the macd indicator as marked on the chart

2. Price has pulled back to re-test the breakout price level of the handle from the cup with a handle pattern, marked around the 0.072 price level.

3.The previous strong re-entry signals are identified technically from the macd chart shown and marked in the past. Each positive macd crossover lead to a surge in prices in the hourly chart.

4. We are now awaiting a successful re-test of the breakout price support level and to be confirmed by the sighting of the macd positive crossover signal in the hourly chart.

5. By referring to the hourly chart, we can get some technical guidance on the next re-entry signal via the macd positive crossover as explained.

6. If the price of PRW closes below the outbreak level substantially ( not marginally ) with heavy volume, then the cup with a handle pattern is probably aborted, especially if the macd continues to be locked in its negative crossing mode. If the price of PRW closes above the outbreak price support, then the next positive crossover of the macd will probably lead to a re-entry signal...and so short term traders will watch this event eagerly.




Hope this little chart is of use to some:) Please read the disclaimer below my signature line, thanks.

dascore