BY LICIA LESLIE
April 28, 2024
Hi Shoppers,
I am seeing the cup and handle formation in the United States Oil Fund (Ticker: USO) and in Alcoa Corporation (TIcker: AA).
Here is it on the weekly chart in USO:
We need a close above $83.25 before going long.
If it pans out, USO can trade up to $100. The top of my pitchfork comes in at $97.25.
Use the low of the handle as your stop loss.
If you zoom out you can see USO is in the midst of an uptrend and the cup and handle is a signal of the continuation of that trend.
AA on the other hand looks more like a rounding bottom:
Again, do not enter on the long side until the stock has cleared the rim closing above $37.65.
Once it does, the target price is $49, which is that first resistance level of the pitchfork.
Be on the lookout as these stocks trade over the rim, I will send out the signal.
Thanks for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis