Cup And Handle Stock Chart at Chart

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Cup And Handle Stock Chart. The cup forms after an advance and looks like a bowl or rounding bottom. This is one of the newer chart formations.

How To Trade The Cup And Handle Chart Pattern
How To Trade The Cup And Handle Chart Pattern from www.thebalance.com

Technical charts show that a stock with 'cup and handle' pattern is easy to identify. It starts when a stock’s price runs up at least 30%. The stock needs to show a 30% uptrend from any price point, but it must be before the base's construction.

How To Trade The Cup And Handle Chart Pattern

Inverted cup and handle patterns can be stronger when the next logical place of support on the chart after the breakdown is a considerable distance away. The stock then breaks down past support which can be a sign that overhead supply in the security may be increasing. The cup forms after an advance and looks like a bowl or rounding bottom. Most of them are defined to find such a pattern on actual daily charts.