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  • Writer's pictureT. Livingston

$MNTA Emerges From Huge Cup & Handle Pattern

Momenta Pharmaceuticals, $MNTA, is emerging from a huge cup and handle pattern.

This is a stock that has been on my radar for the last few months. There are a few things that I really like about this chart. First, big bases offer the potential for strong, multi-month moves higher. It's almost like the stock has been waiting and building and all that built up tension is about to be released.

Second, I really like the volume displayed in the chart. There was a strong move higher in January on massive volume. As $MNTA consolidated over the next four months, it did so on relatively calm volume, indicating a reluctance by many owners to sell. This was followed by huge volume coming in as $MNTA broke out above $35.

Finally, I like the behavior of this stock in the first half of 2020. It never lost its 40-week moving average in March as the S&P 500 declined far below it's 40-week moving average. The calm price action prior to this week is also a plus in my book.

Full Disclosure: Momenta Pharmaceuticals is a stock I currently own.

Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.


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