SURGE ENERGY INC Stock: The Cup and Handle Pattern Analysis

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In the world of stock market investing, identifying patterns can be the difference between success and failure. One such pattern that has caught the attention of many traders is the Cup and Handle pattern. This article delves into the Cup and Handle pattern and analyzes its application on the stock of SURGE ENERGY INC (NYSE: SURI).

Understanding the Cup and Handle Pattern

The Cup and Handle pattern is a continuation chart pattern that occurs after a significant upward trend. It consists of two main parts: the cup and the handle. The cup represents a rounded bottom with a slight downward slope, resembling a coffee cup. The handle, on the other hand, is a brief period of consolidation or consolidation with a slight upward slope, resembling a handle.

Applying the Cup and Handle Pattern to SURGE ENERGY INC

Looking at the stock chart of SURGE ENERGY INC, it becomes evident that the company's stock has followed the Cup and Handle pattern. After a significant upward trend, the stock entered a rounded bottom, forming the cup. This phase lasted for several months, during which the stock consolidated its gains.

Following the cup formation, the stock entered a brief consolidation phase, forming the handle. This phase is characterized by a slight upward slope, indicating that the stock is ready to continue its upward trend.

Technical Analysis of SURGE ENERGY INC

Several technical indicators support the Cup and Handle pattern in SURGE ENERGY INC. The Relative Strength Index (RSI) shows that the stock is in an overbought condition, suggesting that it may continue to rise. Additionally, the Moving Average Convergence Divergence (MACD) indicator is showing a bullish crossover, indicating that the stock is likely to move higher.

Case Studies

To further illustrate the effectiveness of the Cup and Handle pattern, let's consider a few case studies:

1. Apple Inc. (AAPL): Apple's stock chart showed a Cup and Handle pattern in 2016, which resulted in a significant increase in its stock price.

2. Microsoft Corporation (MSFT): Similarly, Microsoft's stock chart displayed a Cup and Handle pattern in 2018, leading to a substantial rise in its stock price.

3. Amazon.com, Inc. (AMZN): Amazon's stock chart showcased a Cup and Handle pattern in 2019, which propelled its stock price higher.

Conclusion

In conclusion, the Cup and Handle pattern is a powerful tool for stock market investors. By analyzing the pattern in the stock of SURGE ENERGY INC, we can see that it is poised for further growth. As with any investment, it is essential to conduct thorough research and consider other factors before making a decision. However, the Cup and Handle pattern offers a compelling case for investors looking to capitalize on the potential upside of SURI stock.

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