According to breakoutwatch.com, SIMO is forming the handle of a cup w/ handle formation. Pivot point is $26.38. Good luck longs!!
Anybody load up? (besides me) and suffer an intraday reversal?!?!?!It pierced the pivot on good volume too!
It appears to me that the Cup/Handle formation formed:Cup - April 29 thur June 1; the Handle formed June 2 thur 11; and the B/O occured June 12 on increased volume. In reality it could be forming a second handle with a B/O around $26.40. IMHO, the stock appears to be simply consolidating at this time $24.50 to $25.50 with a B/O around $25.50 and again showing resistance around $26.40.Same song, just a difference verse or interpretation.Whatever its a great long term hold or a trading stock for those who like volitility.Good Luck, Rbutler.
What is this formation and its immplications?
Not familar with that formation..what is the implication?? Up/Down?
Most cup w/handle formations lead to a significant price increase. The average breakout high is about 20%. But be warned they can fail and do and lead to losses. The breakout must be on significant volume.
cup/handle formations typically lead to significant breakouts and new highs. i agree with the poster's identification of a cup and handle and also a piviot around 26.39. most certainly this stock will be trading in the 30's by at least early next year.