Smiths Group PLC S/ADR Stock: Cup and Handle Pattern Analysis

SMITHS(7)Stock(6496)ADR(1501)PLC(417)Cup(88)GROUP(389)

In the world of stock market analysis, patterns can be the key to predicting future price movements. One such pattern that has been widely studied and discussed is the Cup and Handle pattern. In this article, we will delve into the Smiths Group PLC S/ADR stock and analyze its Cup and Handle pattern to understand its potential future trajectory.

Understanding the Cup and Handle Pattern

The Cup and Handle pattern is a bullish continuation chart pattern that is characterized by a "cup" shape followed by a "handle." The cup represents a period of consolidation or sideways movement, where the stock price slowly rises before correcting slightly. The handle, on the other hand, is a period of consolidation where the stock price remains relatively flat.

Smiths Group PLC S/ADR Stock Analysis

Let's take a look at the Smiths Group PLC S/ADR stock and see how it fits into the Cup and Handle pattern.

The Cup

The cup phase of the Smiths Group PLC S/ADR stock can be seen from early 2020 to late 2021. During this period, the stock price slowly rose from around 30 to a peak of 70. This upward trend was interrupted by a brief correction in the middle of 2021, but the overall trend remained upward.

The Handle

The handle phase of the pattern is currently ongoing. After reaching its peak, the stock price corrected slightly and has been consolidating in the range of 65 to 70 since early 2022. This consolidation phase is essential for the pattern to be validated.

Potential Future Movement

If the Cup and Handle pattern holds true, the Smiths Group PLC S/ADR stock could be on the verge of a significant upward movement. The next logical step would be for the stock price to break out of the handle phase and move towards the next resistance level, which is currently around $75.

Case Studies

To further illustrate the effectiveness of the Cup and Handle pattern, let's take a look at some historical examples of stocks that followed this pattern successfully.

One such example is Microsoft Corporation (MSFT). In the late 1990s, MSFT stock followed a Cup and Handle pattern, which eventually led to a significant upward movement. The stock price increased from around 60 to over 100 in a matter of months.

Another example is Apple Inc. (AAPL). In 2012, AAPL stock followed a Cup and Handle pattern, which resulted in a significant increase in its stock price from 600 to over 700.

Conclusion

The Cup and Handle pattern is a powerful tool for stock market analysis. By analyzing the Smiths Group PLC S/ADR stock and its Cup and Handle pattern, we can see that the stock has the potential for significant upward movement in the near future. However, it's essential to remember that stock market analysis is not an exact science, and it's always advisable to consult with a financial advisor before making any investment decisions.

Us Stock screener