HERO MOTOCORP LTD daily chart, it seems like an interesting setup is forming.
It is potential cup and handle pattern. The "cup" portion appears to have formed between roughly early February and late April, and we might be seeing the beginning of the "handle" now.
Here's a breakdown of what I'm seeing:
Cup: The price has made a rounded bottom, suggesting a consolidation phase.
Handle (Potential): After reaching a high around ₹4,325, the price has pulled back slightly. If this pullback remains relatively shallow and trends upwards again, it could form the handle.
Breakout Level: Resistance level around ₹4,325. A decisive break above this level could signal the completion of the cup and handle pattern.
Target: Potential target around ₹4,770.50, which aligns with a common way to estimate the target of a cup and handle (measuring the depth of the cup and adding it to the breakout level). The calculation you've shown (₹4,325 + (₹4,325 - ₹3,680) ≈ ₹4,970) is slightly different but still in the same ballpark.
It's important to remember that this is just a potential pattern, and there's no guarantee it will play out. We need to see if the handle formation completes and if the price breaks out above that ₹4,325 level with good volume to confirm the pattern.
Keep an eye on the price action and volume in the coming days to see if this bullish setup materializes! Let me know if you have any other questions.
It is potential cup and handle pattern. The "cup" portion appears to have formed between roughly early February and late April, and we might be seeing the beginning of the "handle" now.
Here's a breakdown of what I'm seeing:
Cup: The price has made a rounded bottom, suggesting a consolidation phase.
Handle (Potential): After reaching a high around ₹4,325, the price has pulled back slightly. If this pullback remains relatively shallow and trends upwards again, it could form the handle.
Breakout Level: Resistance level around ₹4,325. A decisive break above this level could signal the completion of the cup and handle pattern.
Target: Potential target around ₹4,770.50, which aligns with a common way to estimate the target of a cup and handle (measuring the depth of the cup and adding it to the breakout level). The calculation you've shown (₹4,325 + (₹4,325 - ₹3,680) ≈ ₹4,970) is slightly different but still in the same ballpark.
It's important to remember that this is just a potential pattern, and there's no guarantee it will play out. We need to see if the handle formation completes and if the price breaks out above that ₹4,325 level with good volume to confirm the pattern.
Keep an eye on the price action and volume in the coming days to see if this bullish setup materializes! Let me know if you have any other questions.
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.
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.