The Cup and Handle pattern is a bullish continuation chart pattern that resembles the shape of a tea cup. It forms after a price rally, where the stock enters a rounded consolidation phase (the “cup”) followed by a smaller, shorter pullback or sideways movement (the “handle”). The pattern signals a pause followed by a potential breakout to higher levels. In the chart of Muthoot Finance, we see this classic formation: a rounded bottom forming the cup, followed by a handle with a slight downward drift, and finally a breakout above the resistance line. The successful retest of the breakout level confirms the pattern and strengthens the bullish outlook.