I see a jagged cup with a jugged handle...However my fundamentals tell me that the book value per share is $11 and ROI is 14% these are better number than EJ. Still waiting for XIN to pop.
Can't hurt to add TA to the list of considerations when watching one's holdings. When those handles form often that is a powerful price jumper. The handle i'm looking for is the one attached to the grocery cart when i roll my money home from my XIN profits next year. In that dream i was stuffing 20's in the mattress then a week later all the computers got viruses and nobody could get money out of the banks, but i was sleeping just fine
To an investor who buys/sells based on fundamental financial numbers, and best estimates of what the future holds for a companies products and managemt team, a post like "cup and handle" is truly a mystery. Does trading based on whether a "cup and handle" is forming, or has formed, really work? Has anyone on this board actually had long term success with that type of trading?
I have reached the conclusion that i believe it would help if you were planning on buying based upon fundamentals and trying to find an entry point with more potential upside than downside. I doubt it is perfect, but may provide some advantage. However, I have not successfully applied this myself. I am studying technical analysis in the hopes that it will help at some point. One of my goals is to try and systematically assess whether it actually works (or helps) for me or not via careful record keeping.