Cup Pattern #Phase1 - saw a sharp down move from Dec22 to Jan23 #Phase2 - Formed a slow base between Jan23 to Apr23 #Phase3 - From May23 - Jun23 it steadily moved up When you add up the 3 phases - the Cup Pattern is visible in the Price Action.
Handle Pattern #Phase4 - Between Jun23 and Jul23 the Price of Pidilite underwent the next small phase of correction Phase#5 the Stock price saw a gradual upmove. When you look at the full move of #Phase4 and #Phase5 - it resembles the Handle of the Cup
The Cup & Handle is a bullish continuation pattern which means that it is usually indicative of a future increase in price once the pattern is complete. Willing Buyers take exposure after the formation of the Handle is complete and push the Price upwards.
If the Pattern is successful, the Price can be expected to rally towards the life time highs of Rs 2918.95 implying a potential 9.6% up-move from the CMP of Rs 2662.80 as on July 21, 2023. The Price appreciation could play out over the next 3-4 months.