Cup and Handle

Favorable Chart Patterns to Look for before Buying a Stock One of the biggest factors an investor should consider before buying a stock is what kind of chart pattern the stock is forming. A company may have fundamentals but if it has an critical chart pattern then it may not be a superior company to invest in. One of the fundamental chart patterns to seem to be for investing in a stock is named a " Cup and Handle " pattern. Typically a " Cup and Handle " looks similar to a coffee cup if you were holding the cup in your right comfort. Generally I look for stocks that revenue 3 Months or more to form a Cup and then develop a Handle for at least 2 Weeks. Some examples are publicized below. AMHC created a Cup for about 14 Months and then developed a Handle for 8 Weeks ( point A ). AMHC moneyless out of the Handle in December of 2001 and then preceded to rise from $8 to $37 a share over the next 12 months for a advance of over 400 %. EASI developed 2 year Cup and then also formed a 10 week Handle ( point B ) before breaking out in August of 2000. EASI ergo proceeded to come from $12 to $38 a share over the next 12 months for a gain of over 200 %. FRNT developed a 12 Month Cup and then formed an 8 Ticks Handle ( point C ) before breaking out in November of 2000. FRNT inasmuch as preceded to rise from $12 to $26 a share for a gain of over 100 % over the next 5 Months. Climactically TARO developed a Cup for 10 Months and then formed a 6 Week Handle ( point D ) before breaking out in October of 2001. TARO so rose from $17 to $50 a share for a gain of 190 % over the next 6 Months. By focusing on companies with good fundamentals that are breaking out of a favorable chart pattern such as a " Cup and Handle " will own you to find winning stocks even in a Bear Market environment. The purpose of our site is to help focus investors on those stocks that have good fundamentals which are grouping favorable chart patterns such as the " Cup and Handle ".