The day after the stimulus package was announced, the market gapped up, but witnessed persistent selling throughout the day. The next day the index gapped down and again witnessed selling through out the day. On the last day of the week (May 15), the move was side ways and we can observe the formation of a Bullish CUP and Handle
. If the pattern formation is not invalidated, it is possible that in the next couple of trading sessions the index will reach targets mentioned in the chart. The upside targets are only possible if the price breaks above the long entry point mentioned and that the stop loss level is respected on a closing basis.
The first version of this analysis appeared in the educational blog of Center for Research in Asset Markets and Economy (CRAME), Christ (Deemed to be University) Lavasa
The content provided in CRAME blog is for educational purposes only. CRAME or the analyst(s) do(es) not assume any responsibility for the financial decisions/actions made on the basis of the analysis presented in the blog.
Prof. Binu P Paul PhD
Prof. Soumya V ACSI