ITC has been consolidating inside a large contracting triangle on the daily chart.
The pattern is defined by:
A falling resistance line connecting the post-rally lower highs.
A rising support line connecting the higher lows around the ₹400 zone.
Price is getting gradually compressed between these two levels.
In the right side of the chart I’ve highlighted the last three swings:
The red curves mark previous sharp declines from the upper trendline back to the rising support. In both cases, the stock held the trendline and reversed higher.
The current swing (green curve) shows a fresh rejection from the same rising support, with buyers once again stepping in near ₹400.
As long as this up-sloping support continues to hold, the structure favours another rotation towards the falling resistance zone near ₹420–430 inside the triangle.
A decisive breakout above that resistance would signal the end of this compression phase and open the door for a larger directional move.
This idea is based purely on:
Respect of the long-term rising support,
Repeated failure of sellers to break below it,
And the repeating swing behaviour inside the contracting triangle.
The pattern is defined by:
A falling resistance line connecting the post-rally lower highs.
A rising support line connecting the higher lows around the ₹400 zone.
Price is getting gradually compressed between these two levels.
In the right side of the chart I’ve highlighted the last three swings:
The red curves mark previous sharp declines from the upper trendline back to the rising support. In both cases, the stock held the trendline and reversed higher.
The current swing (green curve) shows a fresh rejection from the same rising support, with buyers once again stepping in near ₹400.
As long as this up-sloping support continues to hold, the structure favours another rotation towards the falling resistance zone near ₹420–430 inside the triangle.
A decisive breakout above that resistance would signal the end of this compression phase and open the door for a larger directional move.
This idea is based purely on:
Respect of the long-term rising support,
Repeated failure of sellers to break below it,
And the repeating swing behaviour inside the contracting triangle.
SiripiVenu
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.
SiripiVenu
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.