AWC (7579): Bullish

Pattern: Cup & Handle Breaks Up 

As usual, let's look at AWC's weekly chart first:

There are 3 rounding bottom patterns as shown in the weekly chart. The target price for the first and second as illustrated in blue and green has been achieved, based on the projection of X & Y as shown.

Let's zoom in the daily chart for the recent breakout, as shown below:

A cup & handle pattern was formed from August till December 2016 (illustrated in orange) and the price broke up recently, with a target price of 1.06 based on the projection of Z.

I am bullish on AWC on the break up of the cup and handle pattern as long as it stays above the brown box region.

Rounding Bottom/Cup & Handle

If you pay attention to my past posts, you will notice that a lot of the bullish stocks contain rounding bottom (or cup and handle) patterns.

Below are a few of my past posts containing the pattern if you haven't seen:

1. JHM Rounding Bottom + Flag Break Up
2. PRESTAR Super Area of Confluence From Two Cups & Handles On Daily & Weekly
3. PESONA Rounding Bottom Hitting Neckline With Strong Resistance - 3 Possible Scenarios Inside
4. JOHOTIN - Third Attempt To Break Historical High With This Reliable Pattern?
5. MIECO - Rounding Bottom With A Red Flag
6. The Era of USD/MYR = 5.0 In The Coming 2017?
7. Comparison Among HEVEA, POHUAT, LIIHEN, LATITUD, FFHB, HOMERIZ - Which One Is The Most Bullish?

Whenever there is rounding forming, there is strength in it. Therefore, this pattern is a reliable pattern and is popular. 

Some of you might be asking, what about rounding top?

Does it mean it is bearish?

Yup! A rounding top pattern is bearish. So, next time if you spot rounding bottom/top, pay extra attention.

Next time I will elaborate in detail on several ways to trade on the pattern depending on your personality and risk appetite.

Topics That You Do Not Want To Miss

How to determine the "bullishness" of the patterns- https://www.facebook.com/BursaSGXcandlestick/videos/378260995905662/

The Trade Management Technique You Need To Know - http://klse.i3investor.com/blogs/candlestick/114496.jsp

Best Way To Learn To Trade Without A Mentor - http://klse.i3investor.com/blogs/candlestick/113821.jsp

Entry Illustration - http://klse.i3investor.com/blogs/candlestick/113605.jsp

Stop Loss & Safe Trading - http://klse.i3investor.com/blogs/candlestick/113510.jsp

Position Sizing - http://klse.i3investor.com/blogs/candlestick/113061.jsp

Come Up With Trading Ideas & Turn Them Into Investing Ideas - http://klse.i3investor.com/blogs/candlestick/114110.jsp

Cheers,

Ming Jong

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