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Cup Anchor Point

QuestionsCategory: QuestionsCup Anchor Point
Adam Nelsson asked 2 years ago
Hi Pat,  My 90/40/45/10 scan that you so kindly shared on Twitter includes $SNPS. The stock looks to be performing a very big cup at around $377.94, anchoring at HOD 12/28/12. It has been reasonably flat over the last week, so is now not terribly extended from its 8EMA. I am probably not alone seeing this, and so wonder whether one should focus more on Volume (which is falling despite slightly higher Price) than Price in this case (I would of course love to know your overall take on the stock). One argument in this case for V rather than P would be that HOD 12/30/21 at $375.09 and HOD 1/3/22 at $371.93 are also reasonable anchor points. This brings me back to the subject of my question: are anchor points terribly important, or is it fair to say that we should rather be looking at lines along the right-hand side of the cup spectrum?   Best, Adam
1 Answers
Avatar photoOwen Staff answered 2 years ago

Hi Adam,
Pat made this video for you...

Adam Nelsson replied 2 years ago

Excellent! Thank you Pat. “Anchor point” was my best way of describing where one would begin the cup line. I learned a lot from your answer, and am now going to focus harder on the handle part of cup and handle. Thank you again!