BBY - Cup with Handle - 2021-01-25

Best Buy Cup with Handle Trade:

• Trend: Stock was in an uptrend and formed a well-defined Cup with Handle pattern.
• Entry: Breakout above the handle high with high volume.
• Reversal Signal: The stock quickly retraced and closed below the handle, signaling weakness.
• Exit: Closed the trade upon breakdown of the handle for a small 2% loss.
• Aftermath: The stock continued moving lower over the next few days, confirming the failed breakout.

This trade reinforces the importance of respecting stop-loss rules and recognizing failed breakouts early to avoid deeper losses.