M_MFIN - Cup and Handle -breakout -Retest -Daily
The chart of M&M Financial Services Ltd (M&MFIN) indicates a classic cup and handle pattern forming, which is a bullish continuation signal typically pointing to a potential breakout.
Key Observations:
Cup and Handle Formation:
The chart shows a rounded "cup" shape between mid-2023 and mid-2024, followed by a smaller consolidation resembling the "handle."
This pattern suggests a period of accumulation, where selling pressure decreases, and a bullish breakout could follow.
Resistance and Breakout Level:
The breakout point from the cup's rim is around ₹314, as highlighted.
The stock appears to have broken out of this resistance level, now trading above ₹340.
Measured Move Target:
Based on the pattern's depth, the chart marks a target price around ₹391.15, representing a potential 24.68% gain from the breakout level.
The target is calculated by projecting the depth of the cup upward from the breakout point.
Volume Activity:
The volume profile indicates a healthy increase as the stock moves up, supporting the breakout. Volume typically spikes during breakouts from such patterns, confirming the validity of the move.
In summary, if M&M Financial Services sustains its move above ₹314 with increasing volume, the next target of ₹391 becomes achievable. However, watch for potential pullbacks or false breakouts, which are common with this pattern.
Key Observations:
Cup and Handle Formation:
The chart shows a rounded "cup" shape between mid-2023 and mid-2024, followed by a smaller consolidation resembling the "handle."
This pattern suggests a period of accumulation, where selling pressure decreases, and a bullish breakout could follow.
Resistance and Breakout Level:
The breakout point from the cup's rim is around ₹314, as highlighted.
The stock appears to have broken out of this resistance level, now trading above ₹340.
Measured Move Target:
Based on the pattern's depth, the chart marks a target price around ₹391.15, representing a potential 24.68% gain from the breakout level.
The target is calculated by projecting the depth of the cup upward from the breakout point.
Volume Activity:
The volume profile indicates a healthy increase as the stock moves up, supporting the breakout. Volume typically spikes during breakouts from such patterns, confirming the validity of the move.
In summary, if M&M Financial Services sustains its move above ₹314 with increasing volume, the next target of ₹391 becomes achievable. However, watch for potential pullbacks or false breakouts, which are common with this pattern.
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.