✅ Identify stocks with a cup and handle formation that have recently broken out above the handle.
8/4/2025 09:29am
There are no stocks currently forming a cup and handle pattern that have recently broken out above the handle. However, based on relevant information, here are some key details about cup and handle formations:
1. **Definition and Significance**: A cup and handle is a bullish continuation pattern that indicates a buying opportunity. It consists of a "cup" formed by a rounded price movement, followed by a downward trending "handle" that typically finds support at the 50% retracement level. This pattern is considered reliable in stocks with sufficient liquidity.
2. **Formation Process**:
- The security reaches a high after significant momentum.
- It then corrects, falling almost 50%.
- Investors purchase the stock anticipating a rebound to previous highs.
- If the pattern is confirmed, the price should see a sharp increase in the short- to medium-term.
3. **Example of Formation**: ETH has recently broken out of a textbook cup and handle pattern, confirming the breakout with a solid retest over this past week of VOL. This is a classic bullish signal pointing to higher targets.
In conclusion, while no stocks currently forming a cup and handle pattern have broken out above the handle, this pattern can be a reliable indicator of potential growth in stocks with sufficient liquidity. Traders should look for stocks that have formed a cup and handle pattern and have broken out above the handle in the recent past, as these are likely to be experiencing a bullish trend.