|A cup & handle pattern is a pattern where a share falls in price from a high and slowly forms a solid bottom before gradually recovering at the same rate it fell.|
|FIGURE 1: IGD, DAILY|
|Graphic provided by: AdvancedGET.|
|Figure 1 is a chart of the ING Global and Equity Dividend and Premium Opportunity Fund (IGD) and shows how the price fell from a high of 9.86 on February 3, 2012, to a low of $5.50 by June 1. From that date, the share price has gradually risen with the odd major correction to a high of $9.09 by September 14 and on rising volume, a sign of strength. From that high, the price fell to $7.84 by September 28 on falling volume, a sign of weakness, suggesting that the price could rise and test the $9.09 level. Should it break above this level, it will give a major cup & handle buy signal, suggesting a target of $12.68 (9.09 5.50=3.59+9.09=12.68).|
|FIGURE 2: IGD. Here's a price of IGD showing yield.|
|Graphic provided by: AIQ.|
|Figure 2 shows that the yield of the share is 11.10% per annum at the price of 9.09. This yield makes the share price even more interesting, and with the cup & handle formation and the possibility of a break above $9.09 and a target of $12.68, the share looks very tempting. |
This is a share I would watch, although with the relative strength index (RSI) starting to turn up, and with volume starting to rise as the price recovers, I would even be a buyer at the present price.
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|Phone # for sales:||6042634214|
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