As shown in the image, there are two parts of this pattern: the cup and the handle. The cup forms after an advance and looks like a bowl or rounding bottom. As the cup is completed, a trading range develops on the right hand side and the handle is formed. Handle forming should be completed in 2-4 weeks. A subsequent breakout from the handle’s trading range signals a continuation of the prior advance.
Price Target- The projected advance after breakout can be estimated by measuring the height of the cup from bottom to the top (green vertical line in the chart). I use 79% – 121% of this height and use it as my target zone.
It is always wise to wait for a break above the resistance line established by the highs of the cup. (Green horizontal line in the chart)