If you subscribe to our weekly newsletter, you might have caught this one rare bird in the mix: a cup and handle pattern that’s now poised to break out. The stock is Church & Dwight (CHD) a producer of household goods. And the short-term swing set up goes like this:
You take the height of the pattern [A] minus [B], and you add the difference–which in this case is 11.72 to [A] and you get 101.00 (rounded down to the nearest 0.10) at [C].
Let’s see in the coming days or weeks if this plays out. It’s a two-month pattern formation, so the target may take longer to reach than most patterns with shorter durations.
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