NLCINDIA - Cup and handle pattern- Multiyear Breakout

Sep 28

**NLC India Ltd** monthly price chart with a **cup and handle pattern** visible.
Here’s a breakdown of the analysis:

### 1. **Cup and Handle Pattern**
- **Cup Formation**: The rounded bottom starting from the high in 2007 to the low in around 2011 shows a long-term downtrend that eventually bottoms out. This cup pattern reflects a long period of accumulation after a major selloff.

- **Handle Formation**: After the cup formation, there is a consolidation phase that forms a handle. The recent price action shows a breakout from this handle.

- **Implication**: This is a bullish continuation pattern. The breakout above the handle indicates that the stock could experience a significant upward move.

### 2. **Breakout Confirmation**
- The price has broken out above the resistance at **₹257.50** and now continues towards the upper targets around ₹311.80 and ₹514.

- **Target**: A measured move for this pattern suggests a potential target based on the height of the cup, which aligns with the ₹311.80 level. A further target can be considered by doubling the breakout height is ₹514.

### 3. **Volume Spike**
- There’s a noticeable volume spike during the breakout, which confirms the strength of the upward move. The increasing volume signals strong interest and buying pressure, adding conviction to the bullish breakout.

### 4. **Support Levels**
- The key support levels are at **₹257.50**, which was previously a resistance point and could now act as a support in case of a pullback.
- The next significant support level is around **₹194** handle low.

### 5. **Conclusion**
- The chart is bullish with the cup and handle breakout backed by strong volume. If the breakout sustains, the next key resistance zone is around ₹311.80, and beyond that, there could be higher targets based on the long-term trend.

This setup is considered bullish, and further upward movement is expected if the breakout sustains.