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Mar 16, 2018
A.I. Stock Market Predictions: Cup & Handle

A.I. Stock Market Predictions: Cup & Handle

Statistics for the Cup-and-Handle (Bullish) Pattern

Using sophisticated AI algorithms to find patterns in the securities markets used to be something only hedge funds and large financial institutions did. 

Not anymore. 

Today, retail investors of all levels can access Artificial Intelligence (A.I.) investment tools with just a few clicks. On Tickeron’s platform, investors can use A.I. to generate investment allocation ideas, to see how well a portfolio is diversified, and even to generate trade ideas based on patterns and trends the A.I. discovers. 

One such pattern is the “Cup-and-Handle Bullish” formation. Here’s what it looks like on a stock chart: 

 

 

Once the security’s price hits the “breakout”, an investor would make a trade in anticipation of the price rising further to the “target price”. The question is: how can investor possibly spot this pattern when there are literally thousands upon thousands of securities being traded?

The answer: Artificial Intelligence! Tickeron’s A.I. has discovered more than 13,000 Cup-and-Handle Bullish patterns, and more than half of them reached the target price as predicted by the A.I. Here are some statistics for the Cup-and-Handle Bullish pattern:

 

 

As you can see, for the patterns where the A.I. was correct, the average gain for the trader was +14.75% -- which is much higher than the loss incurred if the A.I. was wrong (which was less than half the time). The average return from all 13,398 discovered patterns was 4.25%.

In short, the Artificial Intelligence is right more often that it’s wrong, which is arguably a noteworthy accomplishment in the trading and investment world. 

 

 

Here is a real-world example of Tickeron’s Artificial Intelligence in action, and it’s for a company everyone knows: Alphabet (Google).

This pattern emerged late last year, on December 20, 2017. Take a look at the chart closely. You can see how the A.I. monitored Google’s price movements through early January, and how Google’s share price traced a cup (points 1 to 3) and a holder (points 3 to 4). As soon as the A.I. noticed that Google hit it’s “breakout price”, the A.I. made a prediction that the stock would rise to $1,145. The A.I. was right:

 

 

For retail investors reading this, who want to learn more about how this tool works and perhaps even give it a try, it is called the Pattern Search Engine and you can try it free for 45 days. The A.I. will deliver trade ideas right to your inbox. 

Here is another opportunity that the A.I. discovered recently. Tickeron pattern subscribers would have seen this pattern in their inboxes sometime just before November of last year. The A.I. started tracing a cup formation from early October through the middle of the month, and the holder formed quickly as you can see on the chart below. Once Twitter hit its breakout price, the A.I. predicted it would bump higher to $19.87. The A.I. was correct in this case as well: 

 

 

For investors who enjoy trading the markets and looking for unique opportunities, it could make sense to add a new, Artificial Intelligence-powered tool to your investment toolbox. Humans do not have the time or the ability to scan the markets day-in and day-out looking for patterns in stocks, ETFs, mutual funds, and cryptocurrencies. It is simply not possible -- unless you get help from algorithms and A.I. Give Tickeron’s new platform a try to enhance your trading by using hard data to trade patterns and make investment decisions. A 45-day trial is free, and you might be surprised at just how effective Artificial Intelligence can be when applied to trading. 

Related Ticker: GOOGL

Momentum Indicator for GOOGL turns positive, indicating new upward trend

GOOGL saw its Momentum Indicator move above the 0 level on July 07, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 77 similar instances where the indicator turned positive. In of the 77 cases, the stock moved higher in the following days. The odds of a move higher are at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where GOOGL's RSI Oscillator exited the oversold zone, of 19 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for GOOGL just turned positive on July 02, 2026. Looking at past instances where GOOGL's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GOOGL advanced for three days, in of 356 cases, the price rose further within the following month. The odds of a continued upward trend are .

GOOGL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Bearish Trend Analysis

The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.

GOOGL moved below its 50-day moving average on June 22, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for GOOGL crossed bearishly below the 50-day moving average on June 15, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where GOOGL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for GOOGL entered a downward trend on July 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock better than average.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.225) is normal, around the industry mean (11.002). P/E Ratio (27.606) is within average values for comparable stocks, (32.407). Projected Growth (PEG Ratio) (1.425) is also within normal values, averaging (32.117). Dividend Yield (0.002) settles around the average of (0.044) among similar stocks. P/S Ratio (10.460) is also within normal values, averaging (69.976).

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GOOGL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

Notable companies

The most notable companies in this group are Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Spotify Technology SA (NYSE:SPOT), Nebius Group N.V. (NASDAQ:NBIS), Baidu (NASDAQ:BIDU), Tencent Music Entertainment Group (NYSE:TME), Pinterest (NYSE:PINS), Snap (NYSE:SNAP), Zillow Group (NASDAQ:Z).

Industry description

Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.

Market Cap

The average market capitalization across the Internet Software/Services Industry is 148.36B. The market cap for tickers in the group ranges from 2.69K to 4.36T. GOOGL holds the highest valuation in this group at 4.36T. The lowest valued company is STBXF at 2.69K.

High and low price notable news

The average weekly price growth across all stocks in the Internet Software/Services Industry was -1%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was -9%. GIBO experienced the highest price growth at 18%, while ONFO experienced the biggest fall at -37%.

Volume

The average weekly volume growth across all stocks in the Internet Software/Services Industry was -32%. For the same stocks of the Industry, the average monthly volume growth was -41% and the average quarterly volume growth was -27%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 48
P/E Growth Rating: 68
Price Growth Rating: 58
SMR Rating: 79
Profit Risk Rating: 94
Seasonality Score: -12 (-100 ... +100)
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A.I. Stock Market Predictions: Cup & Handle