Cup And Handle
The "Cup and Handle" is a technical chart pattern used in stock trading. It resembles a cup with a handle, where the cup is formed after a price decline followed by a gradual rise, creating a rounded bottom. This pattern indicates a potential bullish trend, suggesting that the stock may rise after the handle forms.
The handle appears as a slight pullback after the cup, typically sloping downward. Traders often look for a breakout above the resistance level at the top of the cup, signaling a good buying opportunity. This pattern is popular among investors using technical analysis to identify potential price movements.