Cup Without Handle
A Cup Without Handle is a ‘U-shaped’ pull-back after a prior advance after an earlier breakout or IPO. Typically, this is an early-stage pattern for small to mid-cap stocks, often accompanying a big earnings increase (making the price climb without the shake-out seen in a cup-with-handle)
The correction of the high to the low should be no more than 30-35% (steeper declines make it tough to recover);
The pattern can be as short as six (6) weeks;
Volume should be down on most days or weeks of the pull back, but stronger as it is moving up (showing strong buying).
Add 10 cents to the previous high, the level where the base started forming.