MONGOLIA ENERGY CORP Stock: Cup and Handle Pattern Analysis

In the world of stock market analysis, identifying patterns can make all the difference. One such pattern, the Cup and Handle, has been attracting the attention of many investors. Today, we delve into the specifics of the Cup and Handle pattern as it applies to the stock of Mongolia Energy Corp. (MNGO).

Understanding the Cup and Handle Pattern

The Cup and Handle pattern is a bullish continuation chart pattern that indicates a strong potential for price increase. It is characterized by a cup-shaped formation followed by a handle. The cup represents a period of consolidation, where the stock price fluctuates within a range. The handle, on the other hand, is a brief period of consolidation after the cup, which is less steep than the cup.

Mongolia Energy Corp: A Closer Look

Mongolia Energy Corp. (MNGO) is a publicly traded company engaged in the exploration, development, and production of natural gas in Mongolia. The company has seen significant growth in recent years, making it an attractive investment opportunity.

Analyzing the Cup and Handle Pattern in MNGO Stock

Looking at the MNGO stock chart, we can see a clear Cup and Handle pattern. The cup formation is visible, with the stock price fluctuating within a range over several months. The handle, while shorter than the cup, shows a period of consolidation before the stock begins to rise.

Key Indicators

Several key indicators suggest that MNGO stock is poised for a significant increase:

• Volume: The volume during the cup formation was higher than the volume during the handle, indicating strong buying interest.
• Support and Resistance: The stock has clear support and resistance levels, which have held firm during the formation of the pattern.
• Technical Indicators: Various technical indicators, such as the Relative Strength Index (RSI) and Moving Averages, suggest that the stock is currently undervalued and ripe for a rally.

Case Study: Ancestry.com

To illustrate the effectiveness of the Cup and Handle pattern, let's look at a case study involving Ancestry.com. In 2017, Ancestry.com stock formed a Cup and Handle pattern, which accurately predicted a significant increase in stock price.

Conclusion

The Cup and Handle pattern is a powerful tool for investors looking to identify potential growth opportunities. Mongolia Energy Corp. (MNGO) stock currently exhibits a clear Cup and Handle pattern, suggesting a strong potential for price increase. As with any investment, it's important to conduct thorough research and consider all factors before making a decision. However, the current analysis of MNGO stock points towards a promising future.