Iroh

The "teacup formation" is a basic rounding bottom with basically a higher line of established resistance(the lid or top of the cup). Teacup formations are not all symmetric, it's a subjective art. The question is, has the handle on the right side of the cup been completed or is it still forming.

On the stockwatch.com graph the lid appears to be 97.5 and we may have made the breakaway move already. It's just my opinion, excluding the fast traffic day to 1.24. that it may not be a non stop move yet and the recent decline to .94 may just be a continuing of the handle building. Everyone has their own approach.

I have done a little research and have found an interpreted teacup formation at http://www.321gold.com/editorial/Hom... and another at http://news.goldseek.com/AlfField/11...

Jim Sinclair did an analysis on a three year (golden) teacup formation on gold on 10-4-02 when the formation was still in progress in the vicinity of $300 and said this particularly perfect symmetric one was extremely powerful to take gold higher. He went on to further say that it was so perfect that you may never see one again like it in your lifetime. This one was so bullish that it had a 90% chance of going higher and that probability almost made it a sure bet.

Needless to say, Mr. Sinclair knew what he was talking about and the people who followed his guidance had good a good payday.

Charts are really fun and I'm glad you asked the question.

Adios amigo!