KOTAKBANK forming Inverted Cup & Handle

An 'inverted cup and handle' chart pattern is a bearish continuation pattern that triggers a sell signal when it appears on the chart. Consider it to be an upside-down cup with a handle on it.

If you look at the conventional cup and handle pattern, you'll notice that it has a unique 'u' form and a downward handle that is followed by a bullish extension. To put it another way, the inverted cup and handle are a mirror image of the ordinary cup and handle. An 'n' shape is formed instead of an u shape, with the handle of the instrument bending slightly upwards on the chart.

If, after reaching underlying support from the prior swing low, a very modest correction is implemented and the stock then breaks down past support, this pattern may be a warning that overhead supply is increasing.