"Cup & Handle Pattern Anyone?" How MPT +29% in UVXY Call
by Mike Paulenoff
September 4, 2020 • 12:00 AM EDT
This past Monday (Aug 31), Mike Paulenoff started alerting MPTrader members about opportunities UVXY, then trading at 21.53.
He wrote: "UVXY continues to act like the canary in the coal mine because it is holding up so well despite ES, SPX, SPY climbing to new all time highs. UVXY remains 12% above its 8/26 low at 18.76 and, more conspicuously, 50% above its 2/20/20 low at 10.65!"
Mike added, "UVXY needs to climb and sustain above 23.00 to start to gain serious bullish traction that will point to a test of critical resistance between 23.70 and 24.60."
Mike went on to post eight intraday follow-up charts throughout this past week, updating members about the progress and counter-trend upside potential developing in UVXY.
This culminated at 10 AM Thursday morning with his observation,"Cup-and-Handle pattern anyone? Key 'Handle support' resides at 22.25 to 23.00, which should contain the pullback from this AM's pre-open new recover rally high at 24.67... ahead of a new upleg to 25.90-2640, in route to 28-31."
By Thursday afternoon, UVXY rocketed out of its month-long base formation to a post-market high of 30.35, satisfying Mike's anticipated upside target, amounting to a gain of 29% from Mike's original post on Monday.
Where is UVXY headed next?
Join Mike's Live Trading Room and find out!
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
During the afternoon session of February 15, this is what Mike Paulenoff posted to the MPTrader Discussion Room about the technical setup in the oil service company SLB (Schlumberger):"This name in the oil service sector exhibits a well-demarcated 4-year bullish channel with the SLB price structure upturning off of the lower boundary line in the vicinity of 47.00 (the 2/13/24 low) amid a glaring double non-confirmation of the weakness into the lower channel line.
On December 26, 2023, fellow MPTrader member FJB asked me the following question: Mike - do you feel comfortable giving some of your top sectors for next year if you have any? This was my response:In order of preference based on my technical setup work:1- XLV (Healthcare)2- XLB (Materials)3- XLE (Energy)4- XLI (Industrials)5- XLF (Financials)As of the close this past Friday, 3/15/24, YTD results showed XLV +6.58%, XLB +6.15%, XLI +7.06%, XLF +8.54%, and XLE (Energy) leading all sectors, at +9.27%.
On February 23, Mike Paulenoff posted the following timely commentary about the bond market to MPTrader members:"Benchmark 10-year YIELD and TLT (20+ Year T-bond ETF)-- I am getting initial, but very strong technical signals that the backup in 10-year YIELD from the late-March low at 3.78% to yesterday's (2/22/24) high at 4.35% is nearing exhaustion ahead of a rollover into another downleg within the larger downleg off of the October 2023 high at 5.00% (see my attached Daily Chart).
On October 27, 2023, Mike Paulenoff discussed his outlook for XBI (SPDR SP Biotech ETF) with our MPTrader members, writing:With the exception of a few months of recovery rally price action here and there, XBI remains in the grasp of a major bear phase off of its February 2021 peak at 174.79 into today's 17-month new low at 64.78. The $64,000 question is whether or not XBI is coming in for a successful test of its May-June 2022 lows at 61.78 and 62.
Nearly four months ago, on the morning of October 31, 2023, this is what I posted to our discussion room about NVDA (Nvidia Corp):NVDA pressed to a new 4-1/2 month low at 392.30 today, and ... the price structure is peering over the edge of a multi-month support plateau (396.50 to 407.64) that if sustained, will leave NVDA vulnerable to downside continuation toward filling the up-gap left behind on 5/25/23 from 305.40 to 366.35. So far, NVDA has bounced off of 392.30 and has just crossed above 400.