The cup-with-handle pattern is a bullish continuation pattern that was popularized by William O'Neil of IBD. The handle marks a small consolidation near resistance and the breakout confirms the pattern. With the cup measuring around three points from low to high, chartists can project a three point move from the rim breakout, which targets a move to the 29.5 area (26.5 + 3 = 29.5).
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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