SBFC -Consolidation breakout - Daily
Here's an analysis of the key features:
1. Overall Pattern: The stock has formed a series of cup and handle patterns over the past year, with the most recent one just completing.
2. Recent Price Action:
- The stock has broken out of the latest cup and handle pattern.
- Current price is 105.62 INR, up 19.78% on the day, indicating a significant bullish move.
3. Key Levels:
- A major resistance level at around 98.03 INR has been broken, which could now act as support.
- There's another potential resistance level at 119.00 INR, which appears to be the next target.
4. Volume:
- There's a substantial spike in trading volume coinciding with the recent price breakout, supporting the bullish move.
- The volume is significantly above the volume moving average, indicating strong buying interest.
5. Price Targets:
- The chart shows two potential targets:
a) 105.81 INR (recent high)
b) 119.00 INR (longer-term resistance)
- These targets represent potential gains of 13.85% and 21.34% respectively from the breakout point.
6. Support Levels:
- The previous resistance at 98.03 INR should now act as support.
- There's another support level at 77.24 INR, which has held multiple times over the past year.
7. RSI (Relative Strength Index):
- The RSI at the bottom of the chart shows a sharp uptick, confirming the strong bullish momentum.
- It's approaching overbought levels, which might suggest a short-term pullback or consolidation soon.
8. Historical Context:
- The stock has been trading in a range between roughly 77 INR and 98 INR for most of the past year, with occasional breakouts.
- The current move represents a significant breakout from this range.
Overall, the chart presents a bullish outlook for SBFC Finance Ltd. The breakout from the cup and handle pattern, supported by high volume and a strong RSI, suggests potential for further upside. The next key level to watch would be the target at 119.00 INR.
However, traders should be cautious of potential short-term pullbacks due to:
1. The large single-day move (19.78%)
2. The RSI approaching overbought levels
3. The proximity to the first target at 105.81 INR
It would be prudent to watch for how the stock behaves around the 105.81 INR level and whether it can hold above the broken resistance at 98.03 INR in case of a pullback.
1. Overall Pattern: The stock has formed a series of cup and handle patterns over the past year, with the most recent one just completing.
2. Recent Price Action:
- The stock has broken out of the latest cup and handle pattern.
- Current price is 105.62 INR, up 19.78% on the day, indicating a significant bullish move.
3. Key Levels:
- A major resistance level at around 98.03 INR has been broken, which could now act as support.
- There's another potential resistance level at 119.00 INR, which appears to be the next target.
4. Volume:
- There's a substantial spike in trading volume coinciding with the recent price breakout, supporting the bullish move.
- The volume is significantly above the volume moving average, indicating strong buying interest.
5. Price Targets:
- The chart shows two potential targets:
a) 105.81 INR (recent high)
b) 119.00 INR (longer-term resistance)
- These targets represent potential gains of 13.85% and 21.34% respectively from the breakout point.
6. Support Levels:
- The previous resistance at 98.03 INR should now act as support.
- There's another support level at 77.24 INR, which has held multiple times over the past year.
7. RSI (Relative Strength Index):
- The RSI at the bottom of the chart shows a sharp uptick, confirming the strong bullish momentum.
- It's approaching overbought levels, which might suggest a short-term pullback or consolidation soon.
8. Historical Context:
- The stock has been trading in a range between roughly 77 INR and 98 INR for most of the past year, with occasional breakouts.
- The current move represents a significant breakout from this range.
Overall, the chart presents a bullish outlook for SBFC Finance Ltd. The breakout from the cup and handle pattern, supported by high volume and a strong RSI, suggests potential for further upside. The next key level to watch would be the target at 119.00 INR.
However, traders should be cautious of potential short-term pullbacks due to:
1. The large single-day move (19.78%)
2. The RSI approaching overbought levels
3. The proximity to the first target at 105.81 INR
It would be prudent to watch for how the stock behaves around the 105.81 INR level and whether it can hold above the broken resistance at 98.03 INR in case of a pullback.
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