A Cup and Handle Pattern - SRF

Today the stock witnessed a breakout from the consolidation base. The cup-with-handle formation occurs frequently before big moves made by stocks and such occurrences are no coincidence. In the present scenario before the formation of the cup and handle pattern, the stock witnessed an uptrend with higher swing lows and higher swing highs from the levels of 2588 to 4260. The time taken for the completion of the pattern is 15 weeks. The pattern depth is 42.07 percent. The handle has formed in the upper half of the base. Volume decreased during the formation of handle. The stock broke out of a consolidation base with above average volume and is trading in an ideal entry zone.

Trade Decision
With a short to medium perspective (3 to 6 months) one can invest between the entry zone of 3772 and 3961 with an initial stop loss of 3460. Price surpassing the recent high and closing above the levels of 3885 on a weekly basis, one can expect a measured move to the zone of 4400 to 4640.

All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.

Comment: A Short term trade idea in SRF was recommended on July 7 at 3829. Currently the stock is trading at a price of 4260, 11 percent appreciation from the recommended levels. One can Continue to HOLD with a TRAILING STOP LOSS of 3780.
Trade closed: target reached: Price recorded a new high at 4388. Book Complete profits and Exit. An appreciation of 16% from the Entry Levels.


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