Tuesday, September 29, 2009 at 01:06PM | Asher Pinto
After a hiccup last week, the indices are trying their damnest to ensure that they close the quarter at new highs. If the Cup with Handle on the hourly chart featured in this article is confirmed, we just might see the quarter finish off on a very strong note tomorrow.
The accompanying chart, an hourly chart of the S&P-500, shows a potential Cup with Handle that will be complete if the ETF can break the "rimline" of the pattern - at 106.90 - within the next day or so (any longer and the pattern will be lopsided and won't count as a legitimate Cup with Handle).
S&P-500 hourly chart
Once (if) there is a breakout through 106.90, a target of 109.65 should be in sight (the depth of the Cup with Handle measures 2.75pts), assuming that minor resistance at 107.40 also gives way.
If, on the other hand, there is no move above 106.90 by say mid-Wednesday, the pattern is moot and further analysis of the hourly chart will be required.
« Cup with Handle on Hourly Chart of SPY? »
After a hiccup last week, the indices are trying their damnest to ensure that they close the quarter at new highs. If the Cup with Handle on the hourly chart featured in this article is confirmed, we just might see the quarter finish off on a very strong note tomorrow.
The accompanying chart, an hourly chart of the S&P-500, shows a potential Cup with Handle that will be complete if the ETF can break the "rimline" of the pattern - at 106.90 - within the next day or so (any longer and the pattern will be lopsided and won't count as a legitimate Cup with Handle).
Once (if) there is a breakout through 106.90, a target of 109.65 should be in sight (the depth of the Cup with Handle measures 2.75pts), assuming that minor resistance at 107.40 also gives way.
If, on the other hand, there is no move above 106.90 by say mid-Wednesday, the pattern is moot and further analysis of the hourly chart will be required.