Long-term Cup & Handle Pattern

3 Ara 2024

A long-term cup & handle pattern has formed in Nintendo (I have been buying during the "handle" formation). It's not a perfect setup as the top of the "handle" is higher than the high near the end of 2007, although that's in the chart adjusted for dividends. It looks a lot more clear on the chart that's not adjusted for dividends (I will post an update with that). Additionally, the "cup" formation is pretty deep, which likely limits upside from here. Therefore, I think a 50% rise is possible if it can decisively break out above $16 on a monthly closing basis. (This would be a price target in the mid-$20 range; more may be possible, and would be welcomed, but at some point I would have a stop loss in mind and hopefully it would continue to run for a while. I will update this idea if/when that happens.)

3 Ara 2024

Not

17 Oca

Not

Down today on Switch 2 news but only a small blip on monthly chart. Today's drop is interesting because I think the Switch 2 will eventually be the catalyst that drives further growth (assuming price can eventually breakout of the long-term pattern identified in this idea). In the meantime, I will look to accumulate more shares if it falls further on this news.

31 Oca

Not

I think I'll continue to wait another month to potentially add some more shares. There's a clear breakout on the chart that's adjusted for dividends but not on the chart that doesn't account for dividends, and it's falling so far today.