I have read in an article that the following stock has a cup-with-handle buy pattern. What do you mean by that?
O'Neil correctly credited the cup with handle(CwH) as a powerful pattern leading to large profits. The sequence of the pattern results in a strong stock first, rising (before the left side of cup). It inevitably pulls back in price (resulting in left side of cup). Price then consolidates sideways for a time, which can take weeks to months (bottom of cup). Then price rises (right side of cup). At this point the price pulls back (forming a handle). The handle-pull back usually falls to the support price line reached during the high point of the bottoming phase.
The target price is estimated to be the price depth of the cup added to the top of the right side of cup. The CwH result manifests itself primarily in price....but can also be found mirrored in indicators such as RSI. The CwH also occurs fractally in all time frames e.g., day, hourly, 30 min etc.
If one is "lucky", you stalk the stock until the Handle is completed, buying then, as it turns north breaking out for a long trend.
The Cup and Handle is a chart pattern popularized by William O'Neill in one of his books. If I recall correctly, it was about his CANSLIM method. He established some rules for meeting his criteria. From Investopedia: