ARM – Cup & Handle Pattern with Potential Breakout

On ARM’s daily chart, we can see a clear Cup & Handle pattern – twice in a row – with strong upward moves following each completion.
The latest pattern completed around the $165 area, after which the stock pulled back into a healthy correction and is now consolidating in the $140–$150 range.

Technical Analysis:

• Pattern: Cup & Handle with a small pullback, indicating potential re-accumulation.
  
• Key Support: $140 (a breakdown below would weaken the setup).
  
• Key Resistance: $150–$155 (a confirmed breakout above could trigger the next bullish leg).
  

Indicators:

• RSI near 50 – neutral, room to move higher.
  
• MACD in a correction phase but close to a potential bullish cross.
  
• ADX showing temporary trend weakness but could strengthen after a breakout.
  
• Stochastic slightly in overbought territory but not extreme.
  
• Volume: Decreasing volume during the pullback – a healthy sign for a potential upward breakout.
  

Trade Plan:

• Entry: On a confirmed breakout above $155 with higher-than-average volume.
  
• Target 1: $165 (previous resistance).
  
• Target 2: $180–$185 (depending on momentum strength).
  
• Stop Loss: Daily close below $140.
  

Summary:
ARM is showing a classic bullish setup with a strong potential for another upward move. A breakout of the key resistance levels with strong volume could trigger a sharp rally, similar to the previous two bullish waves.