Pullback Expected Forming Handle of Cup and Handle
Look at this yahoo link and what does the picture look like, yes a bowl or a cup, which should soon form the handle. Cup and handles are one of the strongest bullish patterns which exist. The stock should meander around to form the handle. This will draw out the weak longs and set the stage for a powerful up cycle.
When people look into the clouds, everyone sees something different. You can't do this when reading charts. You also need to know the catalyst behind the pattern because this is the reason a stock moves not the pattern itself. Its not a cup and handle. A cup and handle have several things:
1) A round bottom.....You can see that there has been a lot of peaks and valleys which negates this pattern. The reason that this can be a powerful mover of a stock is because there has been a lot of latent pressure between sellers and buyers. Look at the bottom there is no consolidation just peaks and valleys.
2) Where the little drop occured today was not at the same height (not even close) as where the cup began which is around $33.00. Think of the handle forming as a failure in reaching a certain point which is where this originally dropped. The continuation happens when the drop fails to gain steam.
3) Give the drop (the handle) around 5 to 10 days to form especially on a 5 month pattern.
Even when you see patterns that may be valid know how the pattern will affect the stock. You also have to confirm your pattern.
I thought it formed a trashcan and a lid. LOL. The hedgefund peckerheads will take this wherever they want it to go. Tech charting has no bearing on a fad/"cult" stock the likes of FB until it proves #$%$ it has to offer, anymore than some trip zero penny trash.