Cup with Handle Forming in New Gold Inc.

NGD Daily

Friday I noticed the cup and handle continuation pattern forming in New Gold (NGD).  This is a possible sign of a significant move higher in the short term.  NGD has been in a strong and stable uptrend, without a single break in a narrow channel since the start of 2009.

NGD Weekly

The cup and handle has been forming for over three months, decreasing price into the handle and decreasing volume into the handle.  I like the company long term, but have chosen to buy calls to decrease my outlay and take advantage of this bullish formation's potential.  

The cup with handle continuation pattern was first recognized and later honed by William J. O'Neil, author of the famed  How to Make Money in Stocks and founder of Investor's Business Daily.   

My 1990's Second Edition Copy