finalyticsbreweries

Cadila : Cup and Handle formation (Long Signal)

Long
NSE:CADILAHC   CADILA HEALTHCARE
Cadila started Human trails of COVID-19 Vaccine.
The daily chart shows classic Cup and Handle formation. Recent Close is above the Handle line.
Hence backed by the news and supported by technical indicators, upmove expected.

Price levels are congested in a narrow zone, hence various support-resistance lines can be observed.

Entry Price: CMP
Target 1: 404
Target 2: 415
Target 3: 425-427

SL: 360

Remain in trend if Price levels sustains above T1.
Trade closed: stop reached
Trade closed: target reached: Target 1 achieved.

Reversed from SL zone.

Comments

Great! Have a doubt about cup and handle pattern. The cup part could have been analyzed as rounding bottom too - isn't it?
+4 Reply
@opal_16, thanks a lot.
Rounding bottoms formations are formed at the end of a downtrend generally which signifies a reversal.
Hence in my opinion this could not be analyzed as rounding bottom. In this case we have a continuation of the trend so cup and handle would be more apt.
Reply
opal_16 finalyticsbreweries
@finalyticsbreweries, Thanks a lot for clarifying.
Reply
Great analysis.
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finalyticsbreweries consistentAccount
@consistentAccount, thanks a lot
Reply
Thanks for this information
Reply
@alokranjann, welcome
Reply
Nice one
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@luckei, thanks
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