Baton,
In a classic cup & handle breakout, the price breakout occurs at the top of the "handle" not the top of the "cup", which places the breakout right around the $80 range. Also, the pivot is technically defined as the price $1/8 above the top of the handle, so as we near that point, I will more precisely define the exact price to place a limit order if anyone is interested.
Also, the last run to $80 accomplished much of what you described in terms of allowing weaker hands to leave the stock. I am sure there is still some resistance at the old high, but a lot of selling pressure left in this most recent run.
I think we'll begin to see volume dry up shortly as we enter the next month, and the handle becomes more clearly defined. I agree the handle will form best if it declines slightly, but with the selloff that occurred, it may not have to.
I'm sticking to my plan of buying on a breakout at the $80 level. For those that wish to wait until $100, I am sure they will be able to join me at $98-99 soon enough after I buy :o)
Best to all GMST longs.
Regards, JB |
