M_M - Flag and Pole - Wkly

5 days agoM_M - Flag and Pole - Wkly

Let's analyze the key aspects:

1. Overall Trend: The stock has been in a strong uptrend since early 2023, with significant acceleration in late 2023 and early 2024.

2. Recent Price Action:
- The stock recently broke out of a consolidation pattern (labeled "Flag and Pole" on the chart).
- Current price is 2,950.85 INR, up 7.73% on the day.

3. Key Patterns and Levels:
- A "Flag and Pole" pattern is identified, which is typically a bullish continuation pattern.
- The breakout from this pattern suggests further upside potential.
- Previous resistance around 2,739.95 INR may now act as support.

4. Price Targets:
- The chart shows two potential targets:
a) 3,013.50 INR (recent high)
b) 4,160 INR (labeled "Can test 4160")
- These targets represent potential gains of 68.55% and 41.73% respectively from the breakout point.

5. Volume:
- Trading volume has been relatively consistent, with some spikes coinciding with major price moves.

6. RSI (Relative Strength Index):
- The RSI has been declining recently despite the price increase, indicating potential divergence.
- This could suggest the momentum might be slowing, but it hasn't affected the price negatively yet.

7. Long-term Support:
- A long-term ascending support line (yellow) can be seen from early 2023, which the price has respected multiple times.

Overall, the chart presents a bullish outlook for Mahindra & Mahindra Ltd. The recent breakout from the flag pattern, coupled with the strong overall uptrend, suggests potential for further gains. However, traders should be cautious of the RSI divergence, which could indicate a potential slowdown or pullback in the near term. The next key level to watch would be the recent high of 3,013.50 INR.