The Cup and Handle is a bullish continuation pattern widely used in technical analysis, where price first forms a rounded “cup” (showing gradual accumulation after a decline) followed by a smaller pullback or consolidation called the “handle.” The cup reflects a shift from selling pressure to buying interest, while the handle represents a short-term pause or profit booking before the next move. A breakout occurs when price moves above the resistance level (the top of the cup/handle) with strong volume, confirming bullish momentum and often leading to a sharp upward move; traders typically enter on this breakout with a stop-loss below the handle and target projected using the depth of the cup.