ZAGGLE: Bullish Cup and Handle Breakout with Strong Volume Surge

7 days agoTechnical Analysis of ZAGGLE

Cup and Handle Pattern: Zaggle Prepaid Ocean Ltd. has successfully formed and broken out from a classic cup and handle pattern, a bullish continuation pattern indicating strong upward momentum. The cup portion spans several months, showcasing a rounded bottom, which is a signal of consolidation and accumulation by buyers. Following this, the handle displayed a brief consolidation before the breakout occurred, confirming the pattern.

Breakout Confirmation: The breakout above the resistance level of ₹389.65, marked by a sharp increase in volume, signifies renewed buying pressure and strong market sentiment. The 66.78% price gain since the bottom of the cup formation further confirms the strength of the breakout.

Volume Surge: The most notable aspect of this breakout is the substantial volume spike during the breakout, which is crucial in validating the pattern. The increased volume suggests institutional buying interest and supports the notion of sustained bullish momentum.

Trend Continuation: After the breakout, the price action suggests that the stock is in a well-established uptrend. The recent news regarding the company's deal with HDFC ERGO has added positive sentiment, further fueling the stock's rally.

Key Levels:

Breakout Level: ₹389.65
Current Price: ₹409.35
Cup Depth: ₹156.21 (66.78% gain from the bottom)
Market Capitalization :INR 4,505.81 Cr

Trading Insight: The cup and handle breakout pattern is one of the strongest bullish indicators, especially when supported by high volume. Traders should consider potential pullbacks as buying opportunities if the stock consolidates before continuing its upward trajectory.

Disclaimer: This post is for informational purposes only and should not be considered as investment advice. Please conduct your own research or consult a financial advisor before making investment decisions.