Cup and Handle Pattern in Info Edge

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The Cup and Handle pattern is a technical analysis formation that suggests a bullish trend. It consists of two main phases:

Cup Formation: This phase resembles the shape of a cup, with a rounded bottom that indicates a period of consolidation. This is followed by a gradual rise in price.

Handle Formation: After the cup, the handle forms as a consolidation period or a slight downward drift. This handle should ideally be shorter in duration compared to the cup.

In the case of Info Edge, this pattern suggests potential for upward momentum following the formation of the handle. Traders often use this pattern to identify buying opportunities as the stock breaks out above the handle’s resistance level.