2 Stocks Where Cup-and-Handle Easy to Grasp

The cup-and-handle pattern is one of the more reliable bullish technical patterns, and it's easy to spot with its rounded lows and clearly defined horizontal rim or resistance line. Cup-and-handle patterns have formed on the daily charts of Microchip Technology (MCHP) and T-Mobile (TMUS) and the stocks look ready to break above rim-line resistance. The patterns project price targets that take the stocks to new highs. 

T-Mobile shares pulled back from their June high and found support at the 200-day moving average, which turned out to be the bottom of the cup. They bounced up to retest the rim line and resistance at the 50-day moving average, but pulled back again, forming the handle of the pattern. Last week, they closed just above the rim line and today are trying to hold that level. ...257 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.