MOTILALOFS: Cup and Handle Breakout – Bullish Continuation Ahead
Analysis Overview: This chart of Motilal Oswal Financial Ltd 
MOTILALOFS highlights a classic Cup and Handle pattern, which indicates a potential bullish continuation. The stock has broken out of this pattern after retesting the neckline, signaling the possibility of further upside.
Key Observations:
Technical Insights:
Breakout Confirmation: A clean breakout above the neckline of the Cup and Handle pattern suggests bullish momentum, supported by rising volume.
Retest and Bounce: The retest of the breakout zone has held, providing confidence that this level will now act as strong support.
Volume Significance: The volume surge during the breakout is a positive indicator that institutional buyers may be driving the move. Sustained higher volume will be crucial for further price appreciation.
52-Week High: The stock is nearing its 52-week high, and a successful breach could lead to a strong upward move, with the next targets in the ₹800-820 range.
Trade Ideas:
Bullish: Enter on a breakout above ₹782.90, targeting higher levels around ₹820.00 and beyond, with a stop-loss below the retest level.
Conclusion: This technical setup in Motilal Oswal Financial Ltd offers an attractive opportunity for bullish traders looking for continuation patterns. The clean breakout, successful retest, volume confirmation, and proximity to the 52-week high make this stock one to watch for potential long positions.
MOTILALOFS highlights a classic Cup and Handle pattern, which indicates a potential bullish continuation. The stock has broken out of this pattern after retesting the neckline, signaling the possibility of further upside.Key Observations:
- The Cup and Handle pattern has formed over several months, signifying accumulation.
- After breaking out from the neckline, the stock retested the breakout zone, which is a positive sign for bulls.
- The stock is now trading above ₹775.60, approaching a 52-week high of ₹782.90.
- Volume Surge: There was a noticeable increase in volume during the breakout, confirming strong buyer interest. Volume remained steady during the retest phase, indicating that the price held firm despite the lower selling pressure.
Technical Insights:
Breakout Confirmation: A clean breakout above the neckline of the Cup and Handle pattern suggests bullish momentum, supported by rising volume.
Retest and Bounce: The retest of the breakout zone has held, providing confidence that this level will now act as strong support.
Volume Significance: The volume surge during the breakout is a positive indicator that institutional buyers may be driving the move. Sustained higher volume will be crucial for further price appreciation.
52-Week High: The stock is nearing its 52-week high, and a successful breach could lead to a strong upward move, with the next targets in the ₹800-820 range.
Trade Ideas:
Bullish: Enter on a breakout above ₹782.90, targeting higher levels around ₹820.00 and beyond, with a stop-loss below the retest level.
Conclusion: This technical setup in Motilal Oswal Financial Ltd offers an attractive opportunity for bullish traders looking for continuation patterns. The clean breakout, successful retest, volume confirmation, and proximity to the 52-week high make this stock one to watch for potential long positions.
Related publications
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.