Cup and Handle

Cup and Handle is a technical trading term for a pattern on a stock chart. It’s worth noting that, if you’re engaging in technical trading and you think that past performance can predict future performance, you might soon be standing on a street corner holding a cup by the handle.

That said, the chart pattern consists of both a continuation and reversal pattern. Which means that the stock goes down and then recovers, creating the shape of a cup.

Then there's a sharp downturn, which resembles the handle. Some people believe that this pattern can project an upward, long-term change in price. Such a trend can last days, months, or even years.

Technical patterns: It’s like looking up at the clouds and seeing, uh...whatever you want to see.