I think the return will come from PCLN going down and TSLA going sideways, but this RATIO CHART is the daily price ratio of the stock prices. Think of it like a $16 stock with the ratio at 0.16 here. If it goes up to 0.19 it will be a relative 13% gain in TSLA versus PCLN . The risk is roughly 10% but the odds are high for a profit, from my perspective.
This is truly not a CUP&HANDLE in the truest sense of the definition - it isn't a show of "accumulation" of Tesla relative to Priceline, rather it is just a chart pattern that is similar to it. It doesn't have the LOGIC of the accumulation pattern that an actual stock will have.
Tim 10:45AM EST 5/9/2014