Classical Cup & Handle Breakout in HDFC BANK
HDFC Bank Ltd shows a classic cup and handle pattern on the weekly timeframe, suggesting a bullish continuation signal.
Here’s a technical analysis:
Cup and Handle Pattern: The chart displays a well-formed cup and handle pattern, which is a bullish technical formation. This pattern often precedes an upward breakout and is considered a strong bullish signal.
Resistance Levels: The stock has broken out above key resistance levels drawn at around ₹1,760–₹1,780, confirming the pattern. This breakout suggests potential upside movement with increased buying interest.
Volume: There is a significant increase in volume during the breakout, which validates the strength of the breakout. High volume on a breakout indicates strong investor confidence in the upward move.
Target Projection: The target projection based on the depth of the cup is approximately 20% above the breakout level, aligning with the level marked around ₹2,100.
Stop Loss: A suggested stop-loss level is placed just below the handle’s low (around ₹1600) to manage risk in case of a pullback.
Moving Averages: The stock is trading above key moving averages, which reinforces the bullish trend and confirms upward momentum.
Here’s a technical analysis:
Cup and Handle Pattern: The chart displays a well-formed cup and handle pattern, which is a bullish technical formation. This pattern often precedes an upward breakout and is considered a strong bullish signal.
Resistance Levels: The stock has broken out above key resistance levels drawn at around ₹1,760–₹1,780, confirming the pattern. This breakout suggests potential upside movement with increased buying interest.
Volume: There is a significant increase in volume during the breakout, which validates the strength of the breakout. High volume on a breakout indicates strong investor confidence in the upward move.
Target Projection: The target projection based on the depth of the cup is approximately 20% above the breakout level, aligning with the level marked around ₹2,100.
Stop Loss: A suggested stop-loss level is placed just below the handle’s low (around ₹1600) to manage risk in case of a pullback.
Moving Averages: The stock is trading above key moving averages, which reinforces the bullish trend and confirms upward momentum.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.