Cup with a handle

Cup with a handle is a pattern that formed by a cup-shaped curve on a stock chart, followed by a short period of consolidation known as the handle. It is created by a gradual and smooth decline in the price of a stock, followed by a rounded bottom that resembles a cup.

The cup with handle pattern is considered a strong bullish signal, indicating that the stock is likely to continue its upward trend. Traders and investors may use this pattern to identify potential buying opportunities, with the expectation that the stock will continue to rise in value.