Cup and Handle

The Pattern:  The cup and handle pattern is a bullish continuation formation that occurs in uptrends.  The pattern is formed with a "U" shaped cup followed by a "U" shaped handle.  The handle must occur at a level that is significantly higher than the cup.  The formation typically spans over several months.
Volume:  Strong volume isn't as important on the cup as it is on the handle but if it exists the bullish implications are that much stronger.  Strong volume on the right side of the handle as the stock breaks out of the pattern is absolutely necessary.
Entry Point:  The optimal entry point is a long position when the stock trades through and above the top of the cup and handle peaks (resistance).
Target:  The target can be determined by measuring the difference of resistance and the bottom of the cup, and adding that figure to the top of the cup and handle (resistance).

PMCS traded into a cup and handle formation that occurred in an uptrend.  In this formation there wasn't much of a change in up vs. down volume on the cup.  The handle formed on average-to-strong volume.  It traded above resistance and hit the target approximately three-weeks later.  

SEPR traded into a cup and handle formation that occurred in an uptrend.  Volume on the right side of the cup was strong at times but stayed quiet most of the way.  Volume on the handle was light to average.  This is one of the occurrences where a lack of selling is enough to push a stock higher.  The stock hit the target in about three-weeks.

There is a cup and handle formation on this chart of CY. 

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