EXGEN RES INC Stock: Cup and Handle Pattern Analysis

In the world of stock market analysis, identifying patterns can be the key to successful trading. One such pattern that has caught the attention of many investors is the Cup and Handle. Today, we're diving into the Cup and Handle pattern, focusing on EXGEN RES INC (EXGN) stock. Let's explore what this pattern entails and how it might apply to EXGN.

Understanding the Cup and Handle Pattern

The Cup and Handle pattern is a continuation chart pattern that indicates a potential upward trend in a stock's price. It is characterized by a "cup" shape, which is formed by a rounding bottom, and a "handle" phase, which is a brief period of consolidation before the stock resumes its upward trend.

The "cup" phase typically takes several months to form and is characterized by a gradual increase in price, followed by a gradual decrease. This creates the rounded bottom shape. The "handle" phase, on the other hand, is a brief period of consolidation where the stock's price remains relatively stable.

EXGEN RES INC Stock: Cup and Handle Pattern Analysis

Now, let's apply the Cup and Handle pattern to EXGEN RES INC (EXGN) stock. By examining the stock's price chart, we can see that it has formed a clear cup and handle pattern.

The Cup Phase

The cup phase in EXGN's stock chart began in early 2020 and lasted until late 2021. During this period, the stock experienced a gradual increase in price, followed by a gradual decrease. This created the rounded bottom shape that is characteristic of the cup phase.

The Handle Phase

The handle phase in EXGN's stock chart began in late 2021 and continued into early 2022. During this period, the stock's price remained relatively stable, indicating a period of consolidation. This is typical of the handle phase in the Cup and Handle pattern.

Potential Upside for EXGN

Given that EXGN has formed a clear Cup and Handle pattern, there is a strong possibility that the stock could resume its upward trend. This is because the Cup and Handle pattern is often a sign of strong underlying support and resistance levels.

Case Study: EXGN's Recent Performance

To further illustrate the potential upside for EXGN, let's look at a recent case study. In early 2022, EXGN stock began to break out of its handle phase, indicating a potential resumption of its upward trend. This breakout was followed by a significant increase in the stock's price, which suggests that the Cup and Handle pattern is indeed a reliable indicator of future price movements.

Conclusion

In conclusion, the Cup and Handle pattern is a powerful tool for investors looking to identify potential upward trends in the stock market. By examining the Cup and Handle pattern in EXGEN RES INC (EXGN) stock, we can see that there is a strong possibility that the stock could resume its upward trend. As always, it's important to conduct thorough research and consider other factors before making any investment decisions.