The first observation of this chart is the cup and handle pattern .
Before the formation of the cup and handle pattern the the stock was completely in a downward trend making lower highs and lower lows.
Now we can see a handle of the cup which is a higher low indicating that there might be end to the previous trend of lower low and lower highs.
This indicates that the sellers are now weaker as they are not able to break the last low of 73 and bulls are now more active.
The recent high of 78.35 is also broken with a strong green candle with huge volume of 7 million which was just 2.7 million for the last hour.
After the break the price is consolidating in a range for 6-7 candles
Another positive indication of this trade are the volume level
there are sharp increase in the recent volume as compared to past volumes which may be the indicator of accumulation by some larger buyers
So now how to trade in this kind of situation
the future possible outcome can be
1) IT might opens flat or slight gap up and cross above the the level of Rs 80 and directly hit the target and make higher or lower high
2) Or it might come back to the support of Rs 78 for retest then make a green candle and then begin the rally
so in both these cases we may buy if any candle close above Rs 80 with a stop loss of 77 and respective target
3) There is always an possibility of the that the plans don't works as planned, the stock just fall from next candle
so in that case we can just ignore this trade and move forward
Its just for understanding purpose , trade at your own risk
Before the formation of the cup and handle pattern the the stock was completely in a downward trend making lower highs and lower lows.
Now we can see a handle of the cup which is a higher low indicating that there might be end to the previous trend of lower low and lower highs.
This indicates that the sellers are now weaker as they are not able to break the last low of 73 and bulls are now more active.
The recent high of 78.35 is also broken with a strong green candle with huge volume of 7 million which was just 2.7 million for the last hour.
After the break the price is consolidating in a range for 6-7 candles
Another positive indication of this trade are the volume level
there are sharp increase in the recent volume as compared to past volumes which may be the indicator of accumulation by some larger buyers
So now how to trade in this kind of situation
the future possible outcome can be
1) IT might opens flat or slight gap up and cross above the the level of Rs 80 and directly hit the target and make higher or lower high
2) Or it might come back to the support of Rs 78 for retest then make a green candle and then begin the rally
so in both these cases we may buy if any candle close above Rs 80 with a stop loss of 77 and respective target
3) There is always an possibility of the that the plans don't works as planned, the stock just fall from next candle
so in that case we can just ignore this trade and move forward
Its just for understanding purpose , trade at your own risk
Trade active:
crossed above 80
as in smaller time frame of 15 min charts, it has formed a double bottom at the level of Rs 80. Which is another positive single for the trade which to boost our confidence in the trade.