The Rounding Structure: The left lip of the cup was established back in late 2024 near the 460.00–470.00 zone. Price then went through a gradual, rounded consolidation base spanning all of 2025 before launching a steady recovery in early 2026.
The Breakout & Retest: A couple of weeks ago, a massive bullish candle surged right through the neckline to hit a peak of ~550.00. Over the last two weeks, the price underwent a healthy, low-volume pullback to retest the original neckline/resistance zone.
Current Action: The current weekly candle is a strong bullish reversal pin-bar/hammer emerging exactly from the retest zone (486.65, up +3.55%), confirming that the old resistance has successfully flipped into support.
Swing Trade Plan
Since this pattern has already completed its retest on a weekly timeframe, the risk-to-reward ratio is exceptionally well-defined at current levels.
1. Entry Strategy
Current Market Price (CMP): Entering around 486.65 is highly favorable because the price has stabilized right above the breakout neckline.
Pyramiding Trigger: You can add to the position if the price breaks and closes above the recent swing high of 550.00 on a daily/weekly basis.
2. Targets
Target 1: 580.00 (Immediate short-term momentum target).
Target 2: 670.00 (The full structural measured move, calculated by projecting the depth of the rounding bottom from the breakout neckline).
3. Stop Loss (Risk Management)
Stop Loss: 430.00 on a weekly closing basis.
Rationale: A weekly close below 430.00 would mean the price has broken back inside the rounding structure, invalidating the immediate breakout momentum and signaling a deeper consolidation or a potential "Cup & Handle" development instead.
The Breakout & Retest: A couple of weeks ago, a massive bullish candle surged right through the neckline to hit a peak of ~550.00. Over the last two weeks, the price underwent a healthy, low-volume pullback to retest the original neckline/resistance zone.
Current Action: The current weekly candle is a strong bullish reversal pin-bar/hammer emerging exactly from the retest zone (486.65, up +3.55%), confirming that the old resistance has successfully flipped into support.
Swing Trade Plan
Since this pattern has already completed its retest on a weekly timeframe, the risk-to-reward ratio is exceptionally well-defined at current levels.
1. Entry Strategy
Current Market Price (CMP): Entering around 486.65 is highly favorable because the price has stabilized right above the breakout neckline.
Pyramiding Trigger: You can add to the position if the price breaks and closes above the recent swing high of 550.00 on a daily/weekly basis.
2. Targets
Target 1: 580.00 (Immediate short-term momentum target).
Target 2: 670.00 (The full structural measured move, calculated by projecting the depth of the rounding bottom from the breakout neckline).
3. Stop Loss (Risk Management)
Stop Loss: 430.00 on a weekly closing basis.
Rationale: A weekly close below 430.00 would mean the price has broken back inside the rounding structure, invalidating the immediate breakout momentum and signaling a deeper consolidation or a potential "Cup & Handle" development instead.
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.
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.