The Cup and handle pattern.

20110713 CPO futures 5 min, gaps up at 3064 and after a pause rallies to 3074. I was talking to a big trader this morning and he responded to the soybean oil rally last night by saying, "We are still bearish, with cpo stocks at 2.03 million tonnes, any potential drop off in cpo exports will see the price collapse...."

 

So the professionals were actually looking for shorts to trade off, and their covering was what caused the 'general price' rise on the 5 min timeframe, as they cover initial short positions....i