Dr Reddy: Unable to sustain breakout above key level

Oct 31, 2022

DRREDDY seems could not be able to pierce through the major resistance line around 4625 (the recent swing high).
Note the volume. It's pretty significant and coincides with the Q2 result. So, things are interesting here.

Chartically, the following traits are seen:

• A Head & Shoulder formation is seen with the neckline around 4200.
  
• There is a downtrend line coming down since last one year.
  
• The downtrend line & the H&S neckline is creating the symmetrical triangle (pennant) pattern.
  
• Now the most interesting part: 31/10/22 has it's Q2 earning date. And see the volume, huge surge.
  
• BUT The volume surge does not able to push the price above its recent swing high (Head of the H&S pattern) 4625.
  
• Rather it closes (CMP: 4433) closes near its long-term support line of 4420-4430 level.
  
• For it to go up, has to convincingly break past 4625 level.
  

Tradewise,
Resistance: 4625
Support: 4290
Next target: 4750/4900
The breakout above 4625 has to sustain good volume.