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Is a “Cup of Hope” taking shape in the Dollar?
Dollar bulls need this Cup and handle to come true since the Dollar still finds Fib resistance at hand.
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Is a “Cup of Hope” taking shape in the Dollar?
Dollar bulls need this Cup and handle to come true since the Dollar still finds Fib resistance at hand.
Hey Dan…great observation!
Buyers dry up at the Fib 38% level/equal highs so far. If this is a cup and handle pattern, the $ needs to hold on the falling support.
It’s been interesting to see how well the dollar has been holding up despite some large advances in the broader market. Great job spotting the potential pattern, it’ll be interesting to see which way things turn out.
Aaron….Awesome job this year on your part. Congrats for a job well done!!!
I have been a fan of MA’s for 20 years, yet it doesn’t seem like MA’s are having a ton of influence on the markets these days.
The wedge continues and will have to end soon!
Chris
Hi Chris,
After yesterday’s market action, I have to say that I did not see this rally coming. Can’t win them all I guess(at least I was not short!!). I do have to say that thanks to you, my portfolio is up over 16% this year!!!! I always give credit where credit is due.
On another note, it looks like the 200 dMA and the upper trendline cross on the daily chart at 1265. Line in the sand?
Or maybe the 50d MA on the weekly chart (1269) carries more relevance.
As always thanks,
Aaron
Andrew….largest up days in history in the NDX 100 took place between 2000-2003.
As you are aware, the potential for a bullish inverse head & shoulders in basic materials has been discussed with members for almost a month.
When a true inverse H&S takes place, the action coming off of the right shoulder can be breath taking to the upside. The Dollar pattern is a short-term cup of hope for Dollar bulls. As reflected in the Einstein post today, the action of this week is a rally off of support and it is now almost to resistance.
good observation on this one, especially if it comes true. Even with a 4% up day, scary to get long this market at all cause if this pattern does come true you will have many more 4% down days, possibly consecutive as well.
I found it interesting in a dshort.com article that showed how 4% down days only happened in longer term downtrends. Which we had 2 or three 4% down days in August….hmmm
SP…Notice in the Cup and handle example, double tops are part of the pattern, along the top of the pattern. This Dollar pattern so far has equal tops. So far the Dollar has not proven it can get above resistance at this time.
Cup & Handles are bullish patterns, that is why I wanted to share what is taking place…the handles are the big key, a breakdown of the handle and the pattern blows up, similar to a right shoulder breakdown, breaks an inverse bullish H&S pattern.
Great question!
Chris
Chris, in your opinion, which has a stronger “power of the pattern”: a “cup and handle” or a “double top”?