CUSCAPI (0051): Bullish

Pattern: Cup & Handle Breaking Out WIth A Falling Wedge TP Achieved

Let's start with CUSCAPI's weekly chart below:

CUSCAPI broke out from the falling wedge reversal pattern in the beginning of August 2016 and subsequently hit the target price of 0.25 based on the pattern projection.

Now, it is attempting to break out the neckline of the cup and handle pattern. Should CUSCAPI successfully penetrate above the neckline, the projected target price is 0.40, which coincides with the major overhead resistance. 

From the daily chart above, we can see the rising is accompanied by increasing volume. During the pull-back period to create the handle, the volume is also decreasing. In its recent push attempting to break the neckline, the volume is rising. This is a healthy sign to show its bull momentum.

Having said that, we will need to see CUSCAPI stay above the neckline, 0.25 to confirm the breakout.

I stay bullish when CUSCAPI is above 0.21. If you are after Cuscapi's future prospects & FA aspects, YiStock has written a great post last week.