THIS IS AN EXAMPLE OF A POSSIBLE CUP-AND-HANDLE FORMATION, WHERE THE HANDLE IS CURRENTLY BEING FORMED.
Cup-and-Handle formations are bullish chart patterns, and they get their names because the chart formation actually looks like a small tea cup with a handle. The important thing to watch for now that the "cup" has formed is the length of the handle. If the handle hangs out there for too long, the chart pattern breaks down. This particular chart shows the trading action taking the stock price across the "handle" trading channel. This is a good sign that the selling pressure has dissipated, and that the bulls will test pushing through the upside of the trading channel for an upside breakout. Upon breaking out to the upside, watch for the stock to charge the 200dma at around .146. That line is a strong line of resistance, and once broken will become a strong line of support.
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