Profited a lot?

btw... ascending triangles breakouts....


this was also seen in TopGun (realised that I forgot to load this morning chart b4 market open)

No buy Comfort.. 2nd tier glove profit taking was strong once price surged
this 2 weeks only buy in NIO (Nasdaq)

i see .....

Ooo ..... realised that I did do an update on MPI

......

consolidation/puullback did happen but certainly not what I was expecting.....



definitely got it so wrong............................

Cup patterns ......

1. Prefer Cup & Handle over Cup. Cup by itself, is prone to failures.

2. Cup & Handle... biggest problem is most fail because their eyes only see what they want to see..

Example...




Looking nicely like a 'cup' yes?

Left of the cup.... high volume
Middle of the cup.... low volume
Right of the cup... high volume...

all a ok?

the next trading day.... 7th Aug



Stock shoots up early.... nice volume.... hits the high .... but end the day very poorly.......

and the rest is history... look at how the stock is trading now....



Well? On Cup and handle, the buy point is just when the stock breaks oiut of the handle.......

trading the stock based on this setup would have hurt badly (hopefully a cut loss was done) ......

but what went wrong here?


Answer? The handle. There was no handle........


so the failure was not the cup and handle pattern but the failure was due to the assumption that this was gonna be a very sweet cup and handle play...

Look at this.. want go short at low.. but suddenly it go high
Better only long hold

This post has been edited by yehlai: Oct 17 2020, 04:56 AM


Attached thumbnail(s)

NIO huh?

Big winner....

Considering the stock is less than 2 bucks not so long ago..... and it's now 28.48?

Ok... stocks like these.... if for me .... la....

this is what my thinking process.....

1. My main worry of course is the climax top, ya. It has gain a lot from where it started and obviously, nothing shoots straight up forever.
But so far it looked good...



lot's of consolidation area.... but that period .. after the run up on the 29th Sep, just before 14th Oct .... it's actually nail biting time....

it was consolidating at the top....

for the opportunist... it's basically base building at the top... and any potential breakout would be explosive.....
for the safety first (or pessimistic) .... it could be a sign the stock might have peaked...

well no matter what the stock was either waiting to breakout or breakdown.....



..... and breakout it did.... a massive breakout too....

which left us to where we are.....



the very first thing top pop up is..... hey, the stock is rather extended. Trading is now above it's previous upper trend line..

The pessimistic view..... since this is one of the age old indicator that suggest that it's okay to take the profit after the massive run up..... and the last two days has suggestion that stock is losing momentum and perhaps the stock could consolidate below the trend line....

the ever opportunist view ....everything is okay. the stock is merely consolidation ONCE more and that a new higher trend line could be form in the near future.

how?

if it is me... i might hold..... and watch ... and use 27.50 as the cue to get lost.



p/s good pick and yeah, I think this company got very good potential....

Hi Boon3, as always thanks for the fine details explained
yes I belive 27.50 should the target last night

I decided to change my strategy, will go in again (with x5 of initial vol) to long hold
historical trend shown it will consolidate after every surge, so will go in during the consolidation and long hold after this

i see i see. but company fundamentals are equally important to gauge and confirm the cup and handle.

any tom dick and harry can manipulate to make a random low volume trading stock looks cup and handle

Cup and handles are just patterns formed in the chart. It has nothing to do with fundamentals of the company.

And you should know, charts can be manipulated.

Speaking of Cup and Handle, does this qualify



Zoom out :


Although the breakout volume isn't that high....

I wouldn't

well.... it's gobbling up the real estate out there......

Looking for real estate ....

New high ....






but .... there's a lot of real estate to cover before it can challenge its all time high of its gogo 2000s......

Were you there when the dot com boom led to tech stocks reaching phenomenal highs? How irrational was it? Was it as crazy as the glove mania 3 months ago?

I wasn't around at that time but am lucky to be told about its glories and of course the horror stories that came with the 'sudden' drastic plunge. And the thing that stood out the most was when the plunged happened, the earnings was actually still very good for Unisem and MPI. And of course, not surprisingly, many failed to 'let go' of the past. ie when MPI crashed, heard many went bargain hunting/buying at so-called supports (supports which never hold. Yeah, makes one wonder, what the point of buying at supports... and yeah... some kena suckered cos they stated using value theories when MPI was around 30 (after crashing from 60s) .... )

Yup, lucky to be taught some precious lessons ...

In a mania, many really fall in love with the stock... not realising the stock is merely a stock and clearly it will never love us back.

Hehe.... I was really a social distancer ... for not replying you properly....

in all honesty... try not to 'look' for cup and handles setups... they are tricky and it's so easy for us to make mistakes....

Your chart, once more ... did some labelling...



A = left side of the cup... (I placed the A lower so can see clearer)

in a C&H .... one should look for volume that drives the stock to A (the left side of the cup) .... the volume must be there.....

in Greatec, the higher volume occurs after A ....

the bottom of cup (oops I did not label) .... as we go down the cup to the bottom of the cup, we want to see diminishing volume.... volume should be tapering off ... and here, we don't see that in Greatec.

the right side of the CUP ... ah... this is ok... the return of higher volume which drives the stock to the same level as the left side of cup... 'check' , this is OKAY for Greatec....

the last part.. ... or the handle.... for Greatec, imo the handle should see the stock consolidate to 6.60. We did not see a clear forming of the handle.

The buy point.... C .

YES, C is the buy point. There is good volume... and the buy point should be around 7.10.

That's my interpretation and it is also why I wouldn't call this C&H.


pst... the buy point and the low point of the handle.... can u accept meh? if can get 6.60 or 6.70, why wait for 7.10? LOL!