Cup and Handle Formation Determined by Fib Ext. Levels
ICP is currenty trading the handle portion of a cup and handle formation which has significance through the use of fib levels. The formation we are currently seeing seems to be a valid cup and handle formation as the handle is, at most, half the height of the cup, and consolidation of the bottom of the cup. Typically, the height of the cup is proportional to the size of the breakout from the top of the cup and handle.
As we can see with the Fibonacci levels, from the bottom of the handle to the top of the formation, we reach the inverse-golden ratio level, 0.68. Alongside this, we see that the assumed breakout height reaches near past the golden ratio level, 1.618. This level in particular, depending on the amount of buying pressure during the breakout, we may see the 1.618 turn into an extremely rigid level of resistance, if not support.
Keep in mind, there may be a retest of the top of the formation from the 1.0 or 0.786 levels, the result of which would further determine the strength and direction of price action.
Obligatory this-is-not-financial-advice.
-Mister E.
As we can see with the Fibonacci levels, from the bottom of the handle to the top of the formation, we reach the inverse-golden ratio level, 0.68. Alongside this, we see that the assumed breakout height reaches near past the golden ratio level, 1.618. This level in particular, depending on the amount of buying pressure during the breakout, we may see the 1.618 turn into an extremely rigid level of resistance, if not support.
Keep in mind, there may be a retest of the top of the formation from the 1.0 or 0.786 levels, the result of which would further determine the strength and direction of price action.
Obligatory this-is-not-financial-advice.
-Mister E.
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