Volatility Contraction Pattern - Hexaware Technologies
Volatility Contraction Pattern (VCP) is a setup popularized by Mark Minervini, where price volatility gradually contracts before a potential strong breakout. It reflects reduced selling pressure and accumulation by strong hands before expansion in price.
Hexaware Technologies is currently showing a strong VCP structure with multiple bullish confirmations on the hourly chart.
The stock has formed three successive rounding bottoms, where each correction is nearly 50% smaller than the previous one, which is a classic characteristic of a healthy VCP setup. This indicates continuous reduction in volatility and selling pressure.
Another important observation is that volume completely dried up during the last rounding formation, suggesting lack of aggressive sellers. Recently, price gave a breakout with a noticeable volume spike, confirming fresh buying interest.
Currently, price is retesting the breakout zone. If the stock is able to sustain above the breakout level, then a bullish continuation move can be expected as per the VCP setup structure.
Technical Observations:
Outlook: Sustaining above the breakout zone may trigger fresh upside momentum. The current structure reflects strong accumulation and improving trend strength.
Disclaimer: This research is only for educational purposes and not investment advice. Please consult your registered financial advisor before investing. I am only a SEBI Certified Research Analyst.
Hexaware Technologies is currently showing a strong VCP structure with multiple bullish confirmations on the hourly chart.
The stock has formed three successive rounding bottoms, where each correction is nearly 50% smaller than the previous one, which is a classic characteristic of a healthy VCP setup. This indicates continuous reduction in volatility and selling pressure.
Another important observation is that volume completely dried up during the last rounding formation, suggesting lack of aggressive sellers. Recently, price gave a breakout with a noticeable volume spike, confirming fresh buying interest.
Currently, price is retesting the breakout zone. If the stock is able to sustain above the breakout level, then a bullish continuation move can be expected as per the VCP setup structure.
Technical Observations:
- Classic Volatility Contraction Pattern (VCP)
- Three successive rounding bottoms
- Each contraction smaller than previous correction
- Volume dry-up before breakout
- Breakout supported by strong volume expansion
- Price retesting breakout zone
- RSI above 60 on hourly timeframe indicating bullish momentum
Outlook: Sustaining above the breakout zone may trigger fresh upside momentum. The current structure reflects strong accumulation and improving trend strength.
Disclaimer: This research is only for educational purposes and not investment advice. Please consult your registered financial advisor before investing. I am only a SEBI Certified Research Analyst.
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.