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)

Requirements:
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).

Buy point:
Add 10 cents to the previous high, the level where the base started forming.