$MAGIC looks to be forming an approximately 7-week Cup & Handle formation (C&H) expected to pan out marked on the chart.
Definition: As a stock forming this pattern tests old highs, it is likely to incur selling pressure from investors who previously bought at those levels; selling pressure is likely to make price consolidate with a tendency toward a downtrend trend for a period of four days to four weeks, before advancing higher. A cup and handle is considered a bullish continuation pattern and is used to identify buying opportunities.
It is worth considering the following when detecting cup and handle patterns:
Length: Generally, cups with longer and more "U" shaped bottoms provide a stronger signal. Avoid cups with sharp "V" bottoms. - CHECK
Depth: Ideally, the cup should not be overly deep. Avoid handles that are overly deep also, as handles should form in the top half of the cup pattern. - CHECK (so far)
Volume: Volume should decrease as prices decline and remain lower than average in the base of the bowl; -CHECK; it should then increase when the stock begins to make its move higher, back up to test the previous high. - PARTIAL CHECK (some volume spikes but still below average at this price)
Inline with the C&H Pattern, my own take is that $MAGIC is a well established token gaining traction in the "P2E blockchain metaverse" gaming space. The devs are working to launch their own chain at which point $MAGIC will be migrated from a coin, and tokenized (token), opening up opportunity to be listed on large exchanges such as Coinbase, Binance, Kraken, etc. Should that happen, the volume traded will 100x and the value could sky rocket.
Definition: As a stock forming this pattern tests old highs, it is likely to incur selling pressure from investors who previously bought at those levels; selling pressure is likely to make price consolidate with a tendency toward a downtrend trend for a period of four days to four weeks, before advancing higher. A cup and handle is considered a bullish continuation pattern and is used to identify buying opportunities.
It is worth considering the following when detecting cup and handle patterns:
Length: Generally, cups with longer and more "U" shaped bottoms provide a stronger signal. Avoid cups with sharp "V" bottoms. - CHECK
Depth: Ideally, the cup should not be overly deep. Avoid handles that are overly deep also, as handles should form in the top half of the cup pattern. - CHECK (so far)
Volume: Volume should decrease as prices decline and remain lower than average in the base of the bowl; -CHECK; it should then increase when the stock begins to make its move higher, back up to test the previous high. - PARTIAL CHECK (some volume spikes but still below average at this price)
Inline with the C&H Pattern, my own take is that $MAGIC is a well established token gaining traction in the "P2E blockchain metaverse" gaming space. The devs are working to launch their own chain at which point $MAGIC will be migrated from a coin, and tokenized (token), opening up opportunity to be listed on large exchanges such as Coinbase, Binance, Kraken, etc. Should that happen, the volume traded will 100x and the value could sky rocket.