The cup with handle formation is a powerful continuation pattern. A prior uptrend must exist in order to rely on the cup with handle pattern. Below are two examples of cup with handle patterns that show the cup formation and the powerful breakout moves. In the case of ADSK, we've recently seen a retracement to the breakout area, which provides another entry point for the trader. KOG was highlighted in our Chart of the Day section less than two weeks ago while still in the handle part of the pattern. The breakout moves in both cases were explosive. Check these two out:
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