POLA ORBIS HOLDINGS INC Stock: Cup and Handle Pattern Analysis

Are you looking to invest in the stock market and are curious about the potential of POLA ORBIS HOLDINGS INC? One key technical analysis tool that investors often use is the Cup and Handle pattern. In this article, we'll delve into what the Cup and Handle pattern is, how it applies to POLA ORBIS HOLDINGS INC, and why it might be a promising investment opportunity.

Understanding the Cup and Handle Pattern

The Cup and Handle pattern is a popular chart pattern used by technical analysts to identify potential buying opportunities. It consists of two main parts: the cup and the handle.

• The Cup: This part of the pattern resembles a "U" shape, indicating a period of consolidation where the stock price has been slowly rising and then correcting. The cup should be smooth and rounded, with no sharp peaks or valleys.
• The Handle: After the cup, the stock price forms a narrow, rounded peak, which is known as the handle. This part of the pattern is characterized by a brief period of consolidation before the stock price resumes its upward trend.

Applying the Cup and Handle Pattern to POLA ORBIS HOLDINGS INC

When analyzing POLA ORBIS HOLDINGS INC's stock chart, we can see that it exhibits the Cup and Handle pattern. The stock price has been gradually rising over the past few months, forming a smooth, rounded cup. Following this, the stock has entered a brief period of consolidation, which is now forming the handle.

Why the Cup and Handle Pattern is Promising for POLA ORBIS HOLDINGS INC

There are several reasons why the Cup and Handle pattern is promising for POLA ORBIS HOLDINGS INC:

• Consolidation: The handle is a sign that the stock price is consolidating before resuming its upward trend. This indicates that there is a strong demand for the stock at its current price level.
• Volume: The volume during the consolidation phase is typically lower than during the upward trend. This suggests that the stock is attracting interest from buyers rather than sellers.
• Support and Resistance: The bottom of the cup and the top of the handle act as key support and resistance levels. If the stock price breaks above the handle, it is likely to continue rising.

Case Study: Apple Inc.

A notable example of the Cup and Handle pattern is Apple Inc. In 2018, Apple's stock chart displayed a clear Cup and Handle pattern. The stock price formed a cup over several months, followed by a brief consolidation period. When the stock price broke above the handle, it continued to rise significantly, reaching new all-time highs.

Conclusion

In conclusion, the Cup and Handle pattern is a promising technical analysis tool for identifying potential buying opportunities. When applied to POLA ORBIS HOLDINGS INC, the pattern suggests that the stock is likely to continue rising. As always, it's important to conduct thorough research and consider other factors before making any investment decisions.