The current market environment is limiting the number of successful Cup with Handle breakouts.Â As conditions improve, the patterns will noticeably improve.
Â This evening’s installment is Johnson and Johnson.
Â Note the RSI(2) is near 98. Backtesting of over 8 million trades found that stocks with an RSI(2) greater than 98 typically underperform over the next 5 days. However, notice that JNJÂ had an RSI(2)Â >98Â for the better part of September.