CupWatch Products

How To Trade the Cup With Handle Family of Trades

Traders should always look at stocks on charts with various time lines.  For instance when trading using a Daily Chart you should also check the Weekly Chart to get a long range perception of the overall trend.  At DEL Associates LLC we scan the Stock Markets each Friday after the Close for stocks that have formed Cup with Handle Patterns on the Weekly Chart.  These are placed in our Weekly CupWatch Report and are added to the CupAlerts Computerized system that sends out and email Alert when the price approaches the Pivot Point or Buy Price.

It can take several months or even years for a base to form on a Weekly Chart hence there will be a limited number of Weekly Cup with Handle Patterns setup.  Those that do will not be affected by the noise in the stock markets like patterns on other charts.  In turn they tend to perform better over a long period of time.  In this blog I have included three such stocks that have done well over the past two years, $BOFI, $RAD, and $RGEN.  We had several stocks that broke out of Weekly Cup with Handle patterns this week and were included in our CupWatch Report for April 25, 2014.

The chart below for $BOFI shows that it broke out two years ago at a price of $16.97 and reached a High of $106 for a gain of 525% before starting to pull back.



The second chart for $RAD shows that it broke out of a Weekly Cup with Handle Pattern at $1.92 and in the past year reached $7.39 for a 285% gain.



The chart for $RGEN broke out at $6 and climbed to $17.26 for a 188% profit.  Weekly Cup with Handle Patterns usually offer less risk and will provide good profits over time.  Of course we still must consider the fundamentals and the health of the overall stock market.