In the world of stock market trading, identifying patterns can be the key to making informed decisions. One such pattern that has been a topic of interest among investors is the "cup and handle" pattern. This article delves into the specifics of Tristar Gold Inc. (TRISTAR GOLD INC ORD) and analyzes its stock chart to determine if the company's shares are forming a cup and handle pattern.
Understanding the Cup and Handle Pattern
The cup and handle pattern is a bullish continuation pattern that is often seen in strong uptrends. It consists of two distinct phases: the cup and the handle. The cup is characterized by a rounded bottom that resembles a "cup" shape. The handle is a relatively flat and narrow part of the pattern that occurs after the cup.
Tristar Gold Inc. Stock Analysis
Looking at the stock chart of Tristar Gold Inc. (TRISTAR GOLD INC ORD), we can see a clear cup and handle pattern forming. The cup phase is evident, with the stock price forming a rounded bottom over a period of several months. The handle phase is currently in progress, with the stock price trading within a relatively narrow range.
Technical Indicators Confirming the Pattern
To further validate the cup and handle pattern, we can look at various technical indicators. The Relative Strength Index (RSI) is a popular momentum oscillator that can help identify overbought and oversold conditions. In the case of Tristar Gold Inc. (TRISTAR GOLD INC ORD), the RSI is currently in the overbought zone, indicating that the stock may be due for a pullback.
Another indicator to consider is the Moving Average Convergence Divergence (MACD). The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. In the case of Tristar Gold Inc. (TRISTAR GOLD INC ORD), the MACD is showing a bullish crossover, suggesting that the stock may continue to rise.
Case Study: Apple Inc.
To illustrate the effectiveness of the cup and handle pattern, let’s take a look at a historical case study involving Apple Inc. (AAPL). In the early 2010s, Apple Inc. formed a cup and handle pattern on its stock chart. The stock price eventually broke out of the handle, leading to a significant rally in the months that followed.
Conclusion
In conclusion, the stock chart of Tristar Gold Inc. (TRISTAR GOLD INC ORD) shows a promising cup and handle pattern, suggesting that the stock may be on the verge of a significant rally. While it is important to conduct thorough research and consider other factors before making investment decisions, the technical analysis presented in this article provides a compelling case for the potential upside in Tristar Gold Inc. (TRISTAR GOLD INC ORD) shares.
NYSE Composite