This is a bullish pattern. The cup and handle pattern imply that the sellers have taken the price lower but buyers absorbed all the selling and took the price again to the level from where it had started falling. Another way of looking at this is that the sellers’ efforts to lower the price failed as buyers entered at the lower level. This reversal of price back to the upper level after taking a U-turn looks like a cup.
After reaching the same level again, the price halts for a while and forms a pattern that looks like the handle of the cup. Once the price goes higher from this level, a significant upmove can be seen, which can be traded intraday. The image below illustrates the cup and handle pattern.

         

 The cup and handle pattern is a bullish chart pattern. When this pattern forms on the chart intraday, you must either take a bullish position or avoid the trade. The formation of the cup and handle pattern implied that buyers have taken charge of the price and all the selling pressure has been absorbed by the buyers because of which a rounding button has formed on the charts.

What should be the target and stop loss in stock using a cup & handle pattern?
          In a cup and handle pattern, when the stock breaks the resistance level above the support for the second time and the stock rises after break out the resistance level, then should buy the stock. Our stop loss will be below the support level of that stock, and our target should be double 1-2% of the stock price. So that we can make a good profit.