Series 7 - General Securities Representative Exam

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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 price
A
A range bound sideways trendless pattern
B
A bullish trend continuation pattern
C
A bearish top - reversal pattern
D

Explanations

The cup and handle pattern is a bullish continuation pattern - it is a consolidation period followed up an upside breakout

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