A Cup and Handle is a close relative to the saucer bottom. It starts as a saucer bottom that instead of breaking out, retraces to form a shallower and smaller curved consolidation near the top of the pattern. A Cup and Handle is a very reliable bullish pattern that is known for producing large and rapid price advances.
Profit Target - can be measured by adding the depth of the cup to the previous price high that forms the resistance of the formation.
Example - This daily chart of GSIC shows a Cup and Handle continuation pattern in an uptrend.
Trading Tip - Keep an eye out for significant volume change as the prices approach the resistance. Strong, rising on-balance volume usually precedes a good breakout.