Bhavishya - Cup and Handle

A cup and handle chart is a bullish continuation pattern in which the upward trend has paused but will continue in an upward direction once the pattern is confirmed.

Figure 2 : Cup with handle

As you can see in Figure 2, this price pattern forms what looks like a cup, which is preceded by an upward trend.

The handle follows the cup formation and is formed by a generally downward/sideways movement in the security's price.

Once the price movement pushes above the resistance lines formed in the handle, the upward trend can continue.

There is a wide ranging time frame for this type of pattern, with the span ranging from several months to more than a year.