Chart patterns
Cup and handle
The cup and handle is a bullish pattern: a rounded bottom shaped like a cup, followed by a small pullback (the handle), then an upside break.
The cup and handle is a bullish pattern: a rounded bottom shaped like a cup, followed by a small pullback (the handle), then an upside break.
Price forms a wide, rounded bottom like a cup: a slow decline then a gradual recovery to the starting level. Then a small sloping pullback forms the handle, just below resistance.
The signal confirms when price breaks above the rim of the cup (the resistance). It is a widely followed bullish continuation pattern, especially on stocks.
Price falls from $40 to $32 then slowly recovers to $40 (the cup), pulls back to $38 (the handle), then breaks above $40.
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