Hello everyone,

Back here again. Last time I posted, Sylvania Platinum (LON:SLP) was on an ascending triangle around the 90-100 pence range, and now it is trading at 125p. This time, my focus is on PZ Cussons (Pz Cussons (LON:PZC)) and Begbies Traynor (Begbies Traynor (LON:BEG)). Both shares are showing the formation of a cup and handle on the larger timeframes (daily). Hence, both are having an iminent breakout. Let's start with £PZC.

PZ Cussons:

As last time, I take various factors into consideration when trading on technical breakouts. Together with technical analysis, I also consider fundamentals and overall market sentiment, and as you can see, Pz Cussons (LON:PZC) has a Stock Rank of 97 as of now. The company is not the best of the best, but it is still one of the best. While earnings growth is average, it is a generally healthy company. There is also a generally positive sentiment surrounding the company's performance, with one of the directors acquiring shares earlier on in February during the last dip at around 240p. Such insider moves are generally a good sign. Also, Barclays recently just initiated coverage for Pz Cussons (LON:PZC) with an overweight rating, with 300p being the price target. Unfortunately, my focus is more on the technical analysis, so I will focus more on that part now:

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As you can see, Pz Cussons (LON:PZC) is pulling off what seems to be the famous cup and handle on the daily chart. While the handle seems a bit off, and the left shoulder seems lower than the right, the pattern does certainly imply a potential breakout above the 270p level. That is because the stock is indeed in what seems to be an ascending triangle as well, where the upward sloping red trendline acts as a major support line since the March 2020 low. The chart below illustrates the current uptrend:

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Based on the technicals, one could easily say that Pz Cussons (LON:PZC) is heading for a breakout, especially with the momentum rank being around 92 and increasing. However, the entry point is highly questionable. An ideal entry point would be on the complete formation of the cup and handle…

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