A “Cup and Handle” Pattern With Lots of Potential

Edward Lance Lorilla
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"CAVA's chart has lots of potential for a breakout."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

Editor's Note: We're just two days away.

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- Stephen Prior, Publisher


One of my favorite strategies in Daily Profits Live is what I call the "lotto trade."

Lotto trades are a secret that Wall Street gatekeeps.

The funny thing is…

Wall Street talks about "lottery ticket" options like they're a bad thing.

Yet I've been treating certain options like lottos for years.

In fact, every Friday in Daily Profits Live I look for lotto plays.

And last week, I found a chart with a lot of potential.

The ticker is Cava Group (CAVA).

Cava is the fast casual Mediterranean restaurant, but you'll see below its chart is even more appetizing.

 

That 130-minute chart looks great.

It has a textbook "cup and handle" pattern, which I've outlined above.

And at the time of this writing, CAVA was breaking out of the handle part. Now the only question is will it close its previous gap. The upward arrow I drew shows there's a lot of room to close that gap.

Overall, I'll be looking for CAVA to take out $56 and close the gap around $60.

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