2/11/2017 – NASDAQ Composite (COMP) 15 Year Cup With Handle Chart Pattern
It seems as if a lot of articles (for the most part) have had a bullish tone to them lately. I've come up with some significant upside targets for some stocks in articles over the last few weeks. In order for these stocks to continue their bullish breakouts, let's make sure that the main index I follow, the NASDAQ Composite, can support a continued breakout. Let review a possible NASDAQ Composite (COMP) 15 Year Cup With Handle chart pattern.
In times like this I hate not being able to reference articles prior to October 2016. I would like to reference a previous article of mine from about 2 years ago. The article was titled "The NASDAQ Composite's 20 Year Cup Pattern" or something like that. It made no reference to a Cup with Handle because a Handle had yet to form on the Cup. Matter of fact, the right side of the Cup ended up pushing slightly higher after the article before forming its Zig-Zag wave pattern that I predicted with great accuracy.
It really stinks not having that information available at the current time. As most members recall, when I switched to the new web provider I had some backups with error messages due to my previous webhost provider tinkering with my files. That is why I always had so much downtime with them.
To date, I am happy that since the switch effective October 1, 2016 I have not had to deal with downtime for the website but one time, and that was mid-day once during a normal backup on the webhost side. But it does really suck losing my great content from pre-October 2016.
Regardless of the past, it now depends on what the market will do, not what it has done anyways. So let's start with a quick checkup on a chart from that article 2 years ago.
NASDAQ Composite (COMP) 15 Year Cup
The last thing I remember writing from the article slightly over 2 years ago was asking a question. How long is it going to take to develop a proper handle for the Cup pattern?
After some digging through my back-up hard drive, I believe I was able to find the chart from that previous article on the NASDAQ's 20 year Cup pattern. It is time stamped January 7, 2015.
An updated chart for the above Cup pattern can answer my questions from over 2 years ago. Was a handle going to develop on the Cup? If so, how long does it take to develop a Handle for a 15 year Cup pattern? Let's look at the next chart for answers to those questions and then start looking at some upside price targets for the breakout from the Cup with Handle chart pattern.
NASDAQ Composite (COMP) 15 Year Cup With Handle Chart Pattern
So here is an updated 20 year monthly chart that illustrates how the Cup with Handle pattern actually ended up developing. The index hit a low of 4,209.76 during the development of the Handle, just slightly higher than the target point I illustrated 2 years ago.
The above chart looks like the NASDAQ already performed a re-test of the breakout area. It also answers the two questions from my article 2 years ago.
- A Handle is going to develop on the Cup pattern that developed for the NASDAQ Composite
- A Handle for a 15 year Cup pattern appears to have taken approximately 6 months to develop
Let's review the breakout potential using both Fibonacci Extension Tools as well as the average percent increase for a Cup with Handle chart pattern and compare the price targets.….
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I look at some very bullish upside price targets for the breakout from the 15 year Cup with Handle chart pattern. The Trump Rally does not appear to be over just yet...however, will you know at what levels you should be looking to lock in gains? This article looks at those areas and informs you of what to monitor!
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