As we see in the chart, there was a time that BEL came from the 3 to 4 peso level. It dipped so low that it looked like a deep sea diver when it dropped below 0.60. How times have changed. Right now, BEL seems to be consolidating near the 1.84 resistance. Should this breakout, there are 2 ways for us to play BEL using the cup and handle.
- Use the rounding bottom since 2005. With this, I would buy on breakout at 1.86 and look at a target of roughly 2.80. Cut loss would be a return below the resistance line.
- Use the big rounding bottom since 2000. The same trigger buy would be used here but target would now be higher at 3.45. Again, cut loss would be a return move below the resistance line.