JASO Cup with Handle Breakout

I highlighted the ideal cup with handle scenario on the JA Solar Holdings (JASO) weekly chart on October 11, 2007 in a post titled Keep Riding the IPOs

JASO – 42.93, the stock has formed a perfect cup with handle base with a pivot point of $48.67. A spread triple top breakout buy exists on a move above $49.


The stock cleared the pivot point of $48.67 on above average volume and then went on to trigger the ascending triple top breakout on Tuesday with a move into the $50 range. The stock is now up more than 131% in four months and has been covered at least 12 times on the blog during that span.

Below are a few of the more notable mentions but you can always do a search for the symbol JASO on the upper right corner on every page. The search feature is very accurate on my blog.

JASO, JA Solar Holdings, Added on 6/13/07 at $24.55, +131%


Let’s take a look at the latest institutional numbers to see where this stock may be headed based on recent buys and sells.

Institutional Analysis:
Held by Institutions: 133
Money Market: 75
Mutual Fund: 57
Other: 1

Shares Held: 16.85 mil
Shares Held Previous Period: 15.71 mil

Shares Bought: 5.90 mil
Shares Sold: 4.76 mil
Value of Shares Bought: $274.5 mil
Value of Shares Sold: $221.5 mil

Top Institutional holders; Shares Held:
Janus Capital Management, LLC; 2,231,630
Janus Research Fund; 1,685,728
Miura Global Management, LLC; 1,545,000
Legg Mason Inc.; 557,812
Ardsley Advisory Partners; 538,000


  1. Nice call Chris.

    Now just repeat a couple hundred times and you can retire!

  2. I think that this cup & handle was not as perfect as you said on JASO. The handle has to ideally be under the left side of the cup. So I would say the real handle on that pattern is from Sept 11th to Sept 19th with a buy point of 41.09…. and I’m in since then!

    Don’t give your good work Chris! I am reading you everyday

  3. Hey Chris,
    IPO I have bought recently is NED…do you think it will head in he same direction as EDU??

    Also Long on RIO & SNCR

  4. Steven Mac says


    I made a No-No with JASO by accepting the risk with a purchase of the stock nearly 3 weeks ago before the pivot point was realized. I decided the risk-to-reward would be worth it using a tight stop in case. I am currently up 29.19% with my retracement stop now at 21%. I started taking interest since your covering in previous postings with this one. Thanks!

  5. Michael,
    A cup with handle can be found with the dates you listed but it is not excellent on longer term charts (just the daily chart).

    However, either way has paid off!

  6. LUBNA,
    I’ll take a look today and let you know.

    That is fine as long as you understand the trade’s risk/reward. It paid off in this situation. Waht was the risk?

    What is you R value on the trade? Looks to me to be at a least 4R or 4-to-1 trade.

  7. Steven Mac says


    I went with a $2.21 risk per share since things were a little rough a few weeks ago. My R on the trade is currently at 5.62:1 ratio and could easily realize a 7:1 near $60.00. I knew the gamble was buying in (way) before the confirmation of a break through the pivot. I took the risk and was able to grab more reward. With JASO heading for the $60 range – you think this one will also make a run to the $60-$100 theory?

    One more thing – what is your outlook for SSRX? – I am down on that one right now and am about to cut this one loose, but I am not ready to ditch quite yet as it looks like it may try to hold the $16 zone and re-attempt a build from there. Thoughts?

    Steven Mac

  8. Steven Mac says


    I didn’t have the opportunity to post additional numbers for my trade with JASO yesterday, but this is how I look:

    Buy Price: $44.23
    Initial Stop Loss (Under 15% Gain): 5% or $42.02
    [Anything over 15% gain, I begin using the Retracement Stop Model you have presented so that my stop begins to move with me and give a little room for the stock to work]
    Target Price: $60.00
    Risk Per Share:$2.21
    Profit Per Share:$15.77
    Target [R]7.13:1

    At Current Price Gain: $56.06 (at close on 10/26)
    Risk Per Share: $2.21
    Profit Per Share (Current):5.35
    [R]5.35:1 (Current)

    To share my progress with trading, after months of taking whatever I could get – usually 12-15% gains (I would sell often for no good reason – operating more on fears that I rather take something than nothing). I am now focusing for the gains of 20-30% and trying to tell myself DO NOT sell if I don’t have a reason to sell. I finally had to shut off the stupid CNBC crap about 2 months ago – they kept me a mess mentally as I listened to what *they* thought the market was going to do. Want an example?

    I am on my 6th time of holding EDU this year – if I could have just held my initial buy earlier this year at $39.98 – I would have been up 112% on that trade alone. But my confidence was rocked with that correction in March (a newbie in the market for 3 days and then SMACK!) and any other time something happened in the market – I just sell off with fear, though I didn’t have any violations.

    I feel that I am getting more confident with my system and am relaxing a little – it just takes time to settle into it. Your instruction & advice has helped me accomplish much of that this year. Thanks!

  9. Steven Mac says


    SSRX moved up 17% this morning – I took the out on this one. Don’t worry about providing feedback for this stock.

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