SUPRIYA - CUP & HANDLE PATTERN BREAKOUT ON DAILY CHART
The chart of Supriya lifescience shows a Cup and Handle pattern, a bullish continuation pattern suggesting the stock is poised for further upward momentum.
Here's a detailed analysis:
Prior Uptrend: The stock has displayed a strong uptrend leading into the pattern, which is essential for validating the Cup and Handle formation. This indicates bullish sentiment.
Cup Formation: The rounded cup spans approximately 9 weeks, representing a phase of consolidation where sellers lose momentum, and buyers gradually regain control. The curve shows a smooth decline and recovery, signaling accumulation by strong hands.
Handle Formation: After the cup's peak, a short-term consolidation below the resistance level forms the handle. This handle allows weaker holders to exit, reducing overhead supply and preparing for a potential breakout. The handle appears relatively shallow, which is considered a bullish sign.
Breakout: The breakout above the resistance line occurs with a noticeable spike in volume, confirming buying interest and signaling the beginning of a new upward trend. High volume during the breakout adds credibility to the pattern.
Target Calculation:
The projected upside is calculated by adding the depth of the cup to the breakout level.
Key price targets post-breakout are ₹744, ₹807, ₹850, and ₹900, marking significant Fibonacci or psychological resistance levels.
Volume Analysis: During the breakout, volume surged significantly, validating the breakout strength. Declining volume during the handle phase further supports the pattern's reliability.
Risk Management: A stop-loss can be placed below the handle support, around ₹645–₹650, to manage risk in case of a failed breakout.
Here's a detailed analysis:
Prior Uptrend: The stock has displayed a strong uptrend leading into the pattern, which is essential for validating the Cup and Handle formation. This indicates bullish sentiment.
Cup Formation: The rounded cup spans approximately 9 weeks, representing a phase of consolidation where sellers lose momentum, and buyers gradually regain control. The curve shows a smooth decline and recovery, signaling accumulation by strong hands.
Handle Formation: After the cup's peak, a short-term consolidation below the resistance level forms the handle. This handle allows weaker holders to exit, reducing overhead supply and preparing for a potential breakout. The handle appears relatively shallow, which is considered a bullish sign.
Breakout: The breakout above the resistance line occurs with a noticeable spike in volume, confirming buying interest and signaling the beginning of a new upward trend. High volume during the breakout adds credibility to the pattern.
Target Calculation:
The projected upside is calculated by adding the depth of the cup to the breakout level.
Key price targets post-breakout are ₹744, ₹807, ₹850, and ₹900, marking significant Fibonacci or psychological resistance levels.
Volume Analysis: During the breakout, volume surged significantly, validating the breakout strength. Declining volume during the handle phase further supports the pattern's reliability.
Risk Management: A stop-loss can be placed below the handle support, around ₹645–₹650, to manage risk in case of a failed breakout.
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