Binni Ong wrote a post · Nov 14, 2024 14:44

Amazon's Points to a $295 Target – Focus on this cup and handle pattern

Earlier in my article, I mentioned my bullish outlook on $Amazon.com CDR (CAD Hedged) (AMZN.CA)$ due to a suspected cup and handle pattern. Now, with the price breaking out, the cup and handle pattern has officially been completed.

Based on the current chart pattern—a cup and handle, which is a bullish continuation pattern—I believe the price is likely to rise.

How high can the stock price go with the cup and handle pattern?

First, let’s talk about how to calculate the profit target of a cup and handle pattern:

1. Measure the Depth of the Cup: Find the distance (price difference) between the highest point (the "rim") and the lowest point (the "bottom") of the cup.

2. Add the Depth to the Breakout Point: Once the price breaks above the resistance level (the top of the handle), add the measured depth of the cup to the breakout level.

In this case, amazon predicted target price = Depth of cup (106) + breakout point 189 = $295

AMZN cup and handle

Re-entry into a cup and handle pattern can occur when the price pulls back to the breakout point after initially breaking out.

In this case, I have identified two potential support levels for a re-entry:

1. $189

2. $201

If the price retraces to these levels and holds, it may offer a favorable re-entry opportunity for traders looking to capitalize on the continuation of the bullish move.

For short-term trading, Soc Gen offers DLCs on $Amazon (AMZN.US)$ .

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Disclaimer:

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only.

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.

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Binni Ong

SGX Academy Trainer | International Speaker | Angel Investor | Automated System Developer | Made first pot Gold at 18

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