Series 7 - General Securities Representative Exam
While studying a price chart, a technical analyst notices a cup and handle (cup and saucer) pattern. Which of the following best describes this pattern?
A bearish bottoming pattern leading to an downside continuation in priceA
A range bound sideways trendless patternB
A bullish trend continuation patternC
A bearish top - reversal patternD
The cup and handle pattern is a bullish continuation pattern - it is a consolidation period followed up an upside breakout