$GT’s weekly chart, a compelling setup is forming

Looking at GT’s weekly chart, a compelling setup is forming. The stock has been carving out a cup-and-handle pattern since mid-2023, with the cup bottoming near $9 and the handle consolidating around $12. This is a textbook bullish continuation pattern, often preceding explosive moves. The 20-week SMA is sloping upward, supporting the trend, while the ADX is rising above 25, confirming strengthening momentum. However, the handle’s tight range between $11.80 and $12.40 is critical. A breakout above $12.40, especially with a weekly close above it, could target $15—measuring the cup’s depth added to the breakout point. Volume contraction in the handle is typical, but I’d want to see a surge on the breakout for conviction. Conversely, a drop below $11.80 could invalidate the pattern, with support at $10.50 (the 50-week SMA) as the next line of defense. Stochastic RSI is nearing overbought territory, so timing is crucial—overextension could lead to a pullback first. For swing traders, this is a watchlist candidate: go long on a confirmed breakout or short on a breakdown with clear stops. GT’s correlation with auto sector trends could also drive volatility, so factor that in!