There are several scenarios that could be played out. The shape of the handle is one possible setup to watch for and place a short term target.
Some people say a cup and handle breakout target is the difference between the top and the bottom of the cup, added to the top. In this case, it would be $22.40-$10.70= 11.70 projected gain. I've heard other "so called gurus" claim the target point is measured from the breakout point of the handle? I've studied them for years and projected targets out in all sorts of fashions. I found them to be like anything else, more of a guess and not all that reliable.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.