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ELN Cup and Handle

By Johns Wu on Sep 06, 2005

th_ELN_cup.gifI had a feeling this would happen. ELN is forming a cup and handle continuation pattern. The textbook definition states that a breakout can occur once the handle formation has completed on descending volume.

However, my experience with cup and handles is that they can frequently fail.

The cup has formed in 1 month and the handle is continuing to form from last Friday’s downward pressure on light volume. I’m going to hang on to this stock as it retraces to see what happens next.

DISCLAIMER: I hold long positions in ELN.

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This entry was posted on Tuesday, September 6th, 2005 at 11:40 am and is filed under Stock Charts. You can leave a response, or trackback from your own site.


2 Responses to “ELN Cup and Handle”


By gotfrank on September 6th, 2005 at 7:01 pm

I’m interested in ELN, too. Now we just need very low volume during the handle formation and have that pick up right before breakout.

By J on September 18th, 2005 at 10:16 pm

one month for a cup and handle is too short wouldn’t you say? 4 weeks is simply not long enough to be considered a cup and handle. There’s just too much market fluctuation in such a short term to be deemed a pattern. A more propoer cup and handle from ELN Seemed to have occured June 2003 to February 2004, albeit that was a longtime ago.

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