This analysis is a continuation of DNT breakout is coming +145% profit idea that I published earlier.
While analyzing DNT , I found a perfect cup and handle formation that satisfies all the conditions of a good cup and handle formation. The cup and handle formation generally sign if the continuation of bullish trend . As the market is forming this pattern, it tests the old high. The handle is formed because of the selling pressure from investors who bought at the level of the old high.
Going through the characteristics of a cup and handle formation:
- The cup was a U shaped cup. -> Satisfied
- The cup was not deep. -> Satisfied
- Handle did not go below the middle of the cup. -> Satisfied
- Volume decreased as the price declined. -> Satisfied
- Volume remain lower than average in the base of the cup -> Not satisfied as we had some spikes in volume
- Backed up to test the previous high. -> Satisfied
The target for the cup and handle formation is determined by measuring the distance between the bottom of the cup to the handle breakout level. The same distance applied from the handle breakout should be the target for this formation.
More bullish signs?
Well, the 50 SMA and 200 SMA are about to crossover which is an indicator of a great bullish trend .
In case the bullish trend continues, the targets are the same from my previous chart.
Targets:
- Cup and handle target: 0.00001014
- Target 1: 0.00001193
- Target 2: 0.00001495
- Target 3: 0.00002097
This trade was greatly based on the concepts found in the cup and handle article in investopedia
Link: https://www.investopedia.com/terms/c/cupandhandle.asp
Good luck trading :)
***This information is not a financial advice. I am still learning and practicing.***
While analyzing DNT , I found a perfect cup and handle formation that satisfies all the conditions of a good cup and handle formation. The cup and handle formation generally sign if the continuation of bullish trend . As the market is forming this pattern, it tests the old high. The handle is formed because of the selling pressure from investors who bought at the level of the old high.
Going through the characteristics of a cup and handle formation:
- The cup was a U shaped cup. -> Satisfied
- The cup was not deep. -> Satisfied
- Handle did not go below the middle of the cup. -> Satisfied
- Volume decreased as the price declined. -> Satisfied
- Volume remain lower than average in the base of the cup -> Not satisfied as we had some spikes in volume
- Backed up to test the previous high. -> Satisfied
The target for the cup and handle formation is determined by measuring the distance between the bottom of the cup to the handle breakout level. The same distance applied from the handle breakout should be the target for this formation.
More bullish signs?
Well, the 50 SMA and 200 SMA are about to crossover which is an indicator of a great bullish trend .
In case the bullish trend continues, the targets are the same from my previous chart.
Targets:
- Cup and handle target: 0.00001014
- Target 1: 0.00001193
- Target 2: 0.00001495
- Target 3: 0.00002097
This trade was greatly based on the concepts found in the cup and handle article in investopedia
Link: https://www.investopedia.com/terms/c/cupandhandle.asp
Good luck trading :)
***This information is not a financial advice. I am still learning and practicing.***
In case you want to rebuy, entry zone is 890 to 950 sats