Cup and Handle in DLF,L&T and Nifty Futures

After the dramatic move of 18th May, some of the scrips slided down & consolidated with low volumes and then slowly moved up forming the rounding pattern. From past 2 days, consolidation can be seen with low volumes, which is acting like handle to the rounding bottom (Cup). Break out from the handle resistance line with good volumes will give confirmation to the pattern. Stop loss should be at the handle low - filter.

About Cup and Handle Patterns: Cup and Handle or Rounding Bottom acts as a good accumulation pattern. The gradual down move of the price with decreasing volumes shows that the selling pressure is reducing. At the center, the price is lowest with low volumes as the supply and demand are balanced. As the demand increases price slowly moves up with the volumes expanding. At the peak again high volumes show the climatic demand. If the supply increases dramatically and the prices are coming down with high volumes then this may form as double top pattern. If the prices are moving down slowly or consolidating sideways with low volumes then it indicates that supply is diminishing.

When the fresh buying starts volumes increases significantly and the new highs are made, as the sellers at the previous top close there positions and new buyers coming in, causing the price to zoom up. This pattern works as a continuation as well as reversal (inverted cup and handle) and has a very good risk-reward ratio.

DLF: Price pattern is good with bowl shaped volumes support. Below is the DLF chart

L&T: Price pattern is good with bowl shaped volumes support. Below is the L&T chart

Nifty Futures: Price pattern is good, but the volumes are not increasing in the up move. Most of the times, Nifty up move is necessary for the success of the others scrips. Below is the Nifty futures 15 min chart.

There are some more scrips which formed Cup and Handle Pattern, please post if any one find them and like to discuss.