Cup and Handle
Rounded U-structure followed by a consolidation. Bullish stock pattern.
Continuation
Difficulty: ●●●○○
Reliability: 7/10
Identified by O'Neil. Usually several months.
- Cup: rounded U bottom (not V)
- Handle: downward sloping consolidation (max 1/3 of cup)
- Breakout above cup lip with volume
Very effective on secular uptrend stocks (NVDA, AAPL…).
When to look
Long-term uptrend assets.
Confirmation
Breakout with volume > 50-period average.