Cup and Handle Pattern:
The chart highlights a well-formed cup and handle:
The cup phase is complete, with a rounded bottom structure that indicates accumulation.
The handle phase is currently forming, showing a slight downward consolidation, typical of this bullish continuation pattern.
Key Levels:
Cup Rim Resistance: Around $0.34 - This is the breakout level for the pattern.
Handle Support: Around $0.22 - This is the lower boundary of the handle.
Key Support Levels:
$0.22 (Handle Support).
$0.1534 (Major Horizontal Support).
Projected Target:
Upon a breakout above $0.34, the target is calculated as the height of the cup ($0.34 - $0.1534 = $0.1866) added to the breakout point. This gives a target of approximately $0.5266.
Indicators:
MACD: Showing bearish momentum, but the histogram is flattening, suggesting a potential reversal soon.
Volume Oscillator: Low volume during the handle phase, which aligns with the expected behavior of the pattern.
MFI (Money Flow Index): At 18.99, MFI indicates an oversold condition, a bullish signal in the context of the handle.
RSI: At 40.48, RSI is in a neutral zone, but it’s approaching levels that suggest potential upward movement.