Sinotel Weekly Chart Cup and Handle Pattern

Since IPO this counter has created a giant cup and handle formation. Price has been trading within the dark blue channel which is handle of the cup. The recent breakdown below the upper red channel support will probably see a retest of the lower support of the blue channel if the 45 to 43 support zone fails. Next support will be the 40 milestone followed by the lower boundary of the red channel. Further weakness will probably test the 36 to 34 support area.

However, any successful rebound from the current support zone or the lower handle support may meet resistance at the 50 mark followed by a challenge of the 55 to 56.5 resistance band.