"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?
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Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts
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