According to the analyst, gold has a significant “Cup and Handle” pattern and the precious metal appears to remain in the “handle” part of the model. The “Cup and Handle” patterns are evident, but especially on smaller timeframes. There aren’t many examples of the multi-year Cup and Handle model in major markets. Details of the analyst’s comments Cryptocoin. com
Cup and Handle model for Altınd
A study reveals that most people don’t realize how “bullish” this pattern is when it occurs over a long period of time. The current “Cup and Handle” (or cup and handle) pattern underneath reflects an upside target of around $3,000, according to analyst Jordan Roy-Byrne. It is also possible to obtain a logarithmic (log) target by measuring the percent distance between the rim of the cup and the bottom. If we do this, we will achieve targets of $3,745 and $4,080, says the analyst. History shows that large, perennial “Cup and Handle” models typically hit their arithmetic target quickly and soon hit their daily target. The best example of a historic cup and handle pattern is the stock market as the US emerges from the Great Depression. The trophy took nine years, the handle four years, and the stock market hit its arithmetic target in four years and its logarithmic target in over five years.
Hang Seng created two cups from 1973 to 1986. The first cup looks more like the silver cup. The handle of this cup is part of its own cup and handle model. This trophy lasted for four years (1981-1985), and the ascending arm (in the form of a running correction) took a little over a year. Hang Seng reached his arithmetic goal fast, reaching 12% of his daily goal before the 1987 crash.
Other examples of historical “Cup and Handle” patterns for gold
In the late 1970s, gold exploded from a three-and-a-half-year-old cup-and-handle model where the handle was only four months long. Gold hit its daily target just 15 months after the breakout. The cup and handle pattern from 1996 to 2005 was unusual because it was a saucer sub-formation rather than a bullish continuation pattern. The cup lasted eight years and the handle 16 months. Gold achieved both its arithmetic and logarithmic targets in just one year.
We know that gold’s cup and handle pattern is a very “bullish” pattern as it has an upside target of $3,000, says the analyst. However, history shows that the target can be reached quickly, followed by the daily target ($3,745 and $4,080) soon to be reached. History also shows that gold may break beyond its daily target. According to the analyst, if gold breaks out of this pattern, it will initiate the most explosive move we’ve seen in 40 years, and this is just the beginning. Fortunately, there is still time to get on board, as a breakout past $2,100 could happen in a few months or a year.