SkyFreak,

First thing to realize is that Pattern Recognition is great!  However it is only another tool and is not the “Be All End All” word on patterns.  One must use their own judgment.  However in the case, the PR software I believe is correct.  Yes you have something that looks like a cup with handle.  However the right side of the cup does really not make enough progress up towards a new high to be valid.  In specific terms the right side of the cup pivot point and handle must form in the top half of the base.  The pivot is above the center of the base.  However the handle goes well below the center of the base.  And I calculate the center to be pretty close to $20.82.  The handle goes well below $20.82.  Hence not a valid cup with handle pattern.  Now the stock could easily go up a few more points and then form a valid handle.  We will just have to wait and see.  Don

Don, thank you very much for the feedback. I appreciate the opportunity to further educate myself.

Don & SkyFreak, I was under the impression that the mid-point of the handle needed to be in the upper half of the cup, but that the low point of the handle could drift below the cup's mid-point as long as the handle maintained a reasonable % decrease (12-15% per HTMMIS).  Ay thoughts?  Brad

Brad,  

You may be correct in the mid point of the handle and the mid point of the base….But should not the handle stay above the 50 day line.  Or at least the majority of it?

Don