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Friday, August 23, 2019 12:35:28 PM
$LAHO Cup-and-handle neckline re-test: ready to launch!
(looks like we could be launching now, but otherwise I expect imminently, next week)
LAHO chart, mid-day today:
This is from Bud Rolf's video that explains the background/discovery of the cup-and-handle continuation pattern by William O'Neill (founder and chief editor of Investors Business Daily) in the 1980's -
Bill O'Neill discovered this price-trade chart pattern while analyzing big board stocks and commodities, but the general effect applies equally well to penny stocks - though some of the more "typical" characteristics will vary in certain ways, due to the lower liquidity and dollar volume overall for these stocks. For example, it often takes fewer weeks/months for this pattern to play out for penny stocks, the depth of the handle (pull-back / consolidation) may be deeper, and the typical continuation run that results after a completed setup pattern can be substantially higher (than "big board" stocks with higher liquidity / dollar volume).
The LAHO pps-trade chart is absolutely textbook "cup-n-handle continuation pattern," and here we are:
There's a lot more to this pattern, regarding what it represents, how it "plays" and WHY it plays. But to explain it in layman's terms, it represents a human behavioral / market price-trade chart pattern and, if you learn about it and understand it, you can see how it applies to a great number of situations involving small-cap penny stocks that experience some significant initial catalyst to start a run, such as what we have here with LAHO/GSCG (the announcement of the planned acquisition of GSCG in May). The cup-and-handle is a pps growth "continuation" pattern, which means that when the pattern is completed, the pps run that was started in May "continues" it's upward climb.
So... we are at the "neck line" test point right now (which is where O'Neill explains is the best time to buy, with high probability of seeing a price increase AT LEAST as much as the depth of the cup ABOVE the neckline re-test point - which, in this case, appears to be .0015). The depth of the cup is approximatly .0015 - .0003 = .0012, so we should see AT LEAST .0015 + .0012 = .0027 before any further consolidation, at which point, I suspect the price-trade action will begin an Elliott Wave pattern for the further upward growth (outside of any large spike that may be attributed to updated financial filings, news related to the acquisition). I believe next week begins the continuation of the upward pps movement, starting the major run for LAHO.
Here's the chart where I mentioned the initial "handle" breakout setup on 8/7/19:
(looks like we could be launching now, but otherwise I expect imminently, next week)
LAHO chart, mid-day today:
This is from Bud Rolf's video that explains the background/discovery of the cup-and-handle continuation pattern by William O'Neill (founder and chief editor of Investors Business Daily) in the 1980's -
Bill O'Neill discovered this price-trade chart pattern while analyzing big board stocks and commodities, but the general effect applies equally well to penny stocks - though some of the more "typical" characteristics will vary in certain ways, due to the lower liquidity and dollar volume overall for these stocks. For example, it often takes fewer weeks/months for this pattern to play out for penny stocks, the depth of the handle (pull-back / consolidation) may be deeper, and the typical continuation run that results after a completed setup pattern can be substantially higher (than "big board" stocks with higher liquidity / dollar volume).
The LAHO pps-trade chart is absolutely textbook "cup-n-handle continuation pattern," and here we are:
There's a lot more to this pattern, regarding what it represents, how it "plays" and WHY it plays. But to explain it in layman's terms, it represents a human behavioral / market price-trade chart pattern and, if you learn about it and understand it, you can see how it applies to a great number of situations involving small-cap penny stocks that experience some significant initial catalyst to start a run, such as what we have here with LAHO/GSCG (the announcement of the planned acquisition of GSCG in May). The cup-and-handle is a pps growth "continuation" pattern, which means that when the pattern is completed, the pps run that was started in May "continues" it's upward climb.
So... we are at the "neck line" test point right now (which is where O'Neill explains is the best time to buy, with high probability of seeing a price increase AT LEAST as much as the depth of the cup ABOVE the neckline re-test point - which, in this case, appears to be .0015). The depth of the cup is approximatly .0015 - .0003 = .0012, so we should see AT LEAST .0015 + .0012 = .0027 before any further consolidation, at which point, I suspect the price-trade action will begin an Elliott Wave pattern for the further upward growth (outside of any large spike that may be attributed to updated financial filings, news related to the acquisition). I believe next week begins the continuation of the upward pps movement, starting the major run for LAHO.
Here's the chart where I mentioned the initial "handle" breakout setup on 8/7/19:
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