Hello bullish Cup & Handle Pattern! It has been a while, old friend! - Thomas Ng 1 Jul 2022
Updated: Jul 8
Chinese President Xi Jinping
In my monthly post on S&P500 Index (SPX) on 26 Jun 2022**, I mentioned about KWEB ETF (a US fund which invests in Chinese software and information technology stocks) outperforming the SPX by a stretch over the past month.
An equivalent SGX-listed ETF to KWEB will be the Lion OCBC Hang Seng Tech ETF.
Lion OCBC HS Tech ETF daily, 12-mth Chart
On 27 Jun 2022, the Lion OCBC HST ETF broke out of its Cup & Hand bullish pattern 'neckline' around S$0.82.
It has been quite a while since I talked about my favorite Cup & Handle pattern as it is a 'Bullish Continual Pattern' or BCP. (https://www.investopedia.com/terms/c/cupandhandle.asp)
For said bullish pattern to materialise, we now wish to look out for a potential backtest of price back to its breakout point (aka 'neckline'), before it moves towards its pattern measured target at around $1.
Of course, given the current global market weakness, it is always prudent to tighten your stop loss levels should bullish price action fails.
possible entry level - $0.82
pattern measured tgt - $1.00
possible cut loss level - $0.765
Reward to risk ratio is 3.3x, not too shabby.
As usual, kindly do your own due diligence & assess if the Technical Analysis opinions are applicable to your trading/investing needs. Have a great weekend! Brought to you by Thomas Ng’s Investment Ideas Broadcast Group. To onboard my curated Broadcast Group, pls email me at email@example.com.
Live Long & Trade Well!
Thank you & regards
Thomas Ng, CMT
Principal Trading Representative
Chart Source: tradingview.com
Image source: theprint.in/world/xi-now-wants-to-make-china-a-tech-superpower-to-end-its-dependence-on-west/614164/