Cup & Handle (and Inverted)

A long rounded base back to old highs, then a small shakeout — the classic momentum launchpad.

Price falls from a high, carves a rounded bottom over weeks (10-45% deep), and recovers to the old rim. Weak holders sold on the way down; patient ones accumulated the base.

Just under the rim comes the handle — a final shallow dip (under ~12%) that shakes out the last impatient sellers. The buy signal is the close breaking above the rim: no supply left overhead.

The inverted cup & handle is the bearish mirror: a rounded top, a feeble bounce, and a breakdown below the rim.

Deeper handles (or a handle in the LOWER half of the cup) invalidate the pattern — that is a new downleg.

Volume ideally dries up in the handle and expands on the breakout.

William O’Neil’s original works on WEEKLY charts of leading stocks — a cup on an illiquid small cap’s daily chart carries far less meaning.

Analysis only: Supath AI does not give investment advice. Consult a SEBI-registered financial advisor before making investment decisions.