We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.
Today he is going to take a look at the technical picture of Deckers Outdoor Corp. (NASDAQ_DECK).
This week let's take a look at the daily line stock chart of DECK.
The line chart shows the closing prices only, and I used the line chart this week because it made the Cup with Handle Chart pattern stand out a little more.
When trading stocks we use the monthly MarketClub Trade Triangle to tell trend, and the weekly MarketClub Trade Triangle for timing the trade.
Right now the MarketClub score is +90, and all three Trade Triangles, daily, weekly, monthly are green, so the MarketClub system is already long DECK.
If DECK trades higher from here, as expected, and makes a breakout of the Cup and Handle pattern, that would be further confirmation that this stock is probably headed higher.
DECK is a Chart to Watch right now, as it looks like a clear cut trading opportunity is happening right now !!!
Thanks,
Jim Robinson
Profit Trading.com
Mike
Hi and thanks for the great question !
I would say a Cup with Handle on any time frame would be important information and would be important if that is the time frame you are trading. but no it would not carry the same implications a Cup with Handle on a daily chart would have.
A daily Cup with Handle would be more reliable for the long term direction of the stock.
I hope that helped !
Thanks !
Jim
If a cup and handle appears on the last day of a 5-day chart, does it have the same implications?