A cup and handle pattern is a bullish continuation or reversal pattern where the formation resembles a “cup with a handle to its right.” Here, the price gradually falls after marking a certain high before moving up again in a similar pace. The price, though, weakens again and forms a “handle” on the top half of the “cup” before breaking out. In general, a price target is set by projecting the height of the cup then added to the point of breakout.
