The Cup and Handle is a bullish continuation chart pattern identified by a rounded, U-shaped price consolidation (the cup) followed by a shorter, shallow pullback forming a slight downward drift (the handle), before the price breaks out to new highs. The pattern was popularised by investor William O'Neil and is widely used by momentum and growth investors to identify stocks building a base before a significant upward move. The cup should be roughly symmetrical and formed on declining volume, while the breakout from the handle ideally occurs on a surge of volume confirming institutional buying. In Indian markets, Cup and Handle patterns are frequently observed in mid-cap and large-cap stocks during broad bull market phases.
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