🧠 Pattern Formation: $ERA
1. Cup and Handle Pattern ✅
The lower curve forms a neat “cup”.
The “handle” appears as a slight decline (consolidation) marked by a small falling wedge.
2. Potential Breakout 🚀
If the breakout from the handle is confirmed (crossing the area around 1.72 with increased volume), there’s significant potential towards the next target.
🎯 Potential Target:
Conservative target = Height of the cup from the base to resistance:
±0.75 (1.75 - 1.00)
Add to the breakout point 1.72 ⇒ Target around $2.00
🔍 Volume:
Volume increases at the initial breakout (before the cup), then lowers during consolidation ⇒ aligns with textbook for this pattern.
⚠️ Beware:
- If it fails to breakout and drops below the handle support (~1.66), it could be invalid.
- A strong candle rejection at the 1.72 area could also signal a false breakout.
✅ Conclusion:
Bullish Bias
Wait for breakout confirmation + volume
Target: $1.90 – $2.00
