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Cup and Handle for Sonic Solutions (NASDAQ:SNIC)

|Includes: Sonic Solutions (SNIC)

Setting Up

Stocks that have recently indicated possible entry points according to technical indicators and currently trade within or are approaching their period of seasonal strength.

Sonic Solutions (NASDAQ:SNIC)

Sonic Solutions (NASDAQ:<a href='https://seekingalpha.com/symbol/SNIC' title='Sonic Solutions'>SNIC</a>) Stock Chart

A classic technical pattern is forming on the chart of Sonic Solutions (NASDAQ:SNIC).   A cup and handle chart is a bullish continuation pattern that sees investors cashing out of an equity at previous highs following a significant downtrend (the cup), only to be met by further buying pressures following a slight pullback of the stock (the handle).   Sonic Solutions (NASDAQ:SNIC) has been outperforming the market for the past few days and a breakout above $12.50 would confirm the bullish continuation pattern.   Seasonal tendencies for this technology company are strongly positive through to January for average gains over the last 16 years of 34%.   Fundamentals for this equity leave much to be desired, putting this equity into the high risk category, however, analysts targets are very optimistic at around $14, or around 16% higher than current levels.

Sonic Solutions (NASDAQ:<a href='https://seekingalpha.com/symbol/SNIC' title='Sonic Solutions'>SNIC</a>) Seasonal Chart



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